Industry Giants Wal-Mart and Visa Settle Lawsuits Over Transactions

Dec 21, 2017

Last month, Wal-Mart Store Inc. confirmed that it would be settling a lawsuit against Visa Inc. The news of this lawsuit settlement over EMV debit card transaction routing was announced just days after these two giants settled lawsuits filed back in 2005 over massive (and still ongoing) credit card interchange litigation.

This lawsuit began in 2016 when Bentonville, Ark.-based Wal-Mart sued Visa over the routing of transactions on the new Visa EMV chip cards. The accusation? Wal-Mart claimed Visa was trying to subvert its preference for routing EMV debit transactions on lower-cost Pin-debit networks. Instead, promoting signature transactions routed over Visa network.

Visa denied this accusation, and Wal-Mart gave no further details on the pending settlement. The only other information provided was simply that both companies were waiting on the judge overseeing the case to sign-off. In the meantime, papers filed concerning the credit card interchange litigation are awaiting dismissal in U.S. District Court in Brooklyn, N.Y.

In a statement to Digital Transactions News, a Visa spokesperson said, “Visa is pleased to put these matters behind us and looks forward to continuing to work with Wal-Mart to serve our mutual customers.”

The “Opt-Out” Case

The federal lawsuit dropped by Wal-Mart has been referred to as its “opt-out” case. In March 2014, Wal-Mart sued Visa on the grounds that the payment card network was price fixing (along with other antitrust violations related to credit card interchange). This case was filed after Wal-Mart passed up its share of $7.25 billion in damages merchants won in a July 2012 settlement.

This class action – known as MDL 1720 – pitted merchants against defendants Visa, Mastercard, and several big banks. 7,000 merchants joined Wal-Mart in this decision; their reason being that the settlement was inadequate. Many chose to then pursue individual actions against the networks.

According to Digital Transactions, “A federal appellate court in June 2016 invalidated the entire MDL 1720 settlement, and the U.S. Supreme Court in March declined to hear the networks’ appeal of that decision. Now the case is back in the Brooklyn district court before Judge Margo K. Brodie, where some observers have predicted it could take years more to resolve.”

Where to Find Secure Payment Processing Services

For the high-risk business, finding safe payment processing services can be a huge challenge – but not with a specialist like EMerchantBroker.com. You can easily protect your business from fraud and chargebacks, thanks to EMB’s wide variety of services and options (e.g. chargeback protection and prevention services). Multiple payment gateways and flexible business funding options are also a huge advantage in working with EMB.

Start the New Year strong. If your business needs secure payment processing services, consider what the team of experts at EMB can offer your business and customers.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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