July 13, 2012 was the day Interchange Settlement received a final approval from the U.S District Court. The Eastern District Court of New York did announce that legal disputes between payment networks, retailers and all the nine major card providers over the interchange of rules and fees had been reached in the long term. For more information you can visit this website; interchange settlement.
Key Settlement details
The following terms and conditions were agreed on by all the parties through years of negotiations:
* Deferred payments
Value of about $1.22 billion was anticipated by deferred payment over time. This value is supposed to be paid out over 8 months.
* Injunctive Classes
The Court has certify an injunctive classes which are used to set forward go forward rules hence no merchant is supposed to miss out on this class. The importance of this class is to prevent more challenges to point of the sales rules.
* Properly formed
To reach commercial reasonable deals in business judgment and discretion, merchants buying groups have agreed to meet with all networks.
* Checkout Fee
Retailers have agreed to charge their customers checkout fee as part of the settlement. This settlement requires disclosure and notice to all the consumers at entry points.
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