Disney settles credit card fees a few days after deposit –

Less than a week after the lawsuit, Disney settled an antitrust lawsuit against Visa and Mastercard on Wednesday, accusing the credit card companies of charging excessive processing fees.

Disney has decided to shelve the lawsuit, according to a lawsuit. Terms of the agreement were not disclosed.

The lawsuit concerned interchange fees charged by credit card companies for each transaction to cover costs associated with processing and authorizing payments. Merchants have long argued that Visa and Mastercard’s ownership of the marketplace allows them to capture these fees, resulting in higher prices for consumers.

“Visa and MasterCard and their affiliates have acquired and maintained market power in the commercial credit and debit card acceptance markets,” Disney representative Sanford Litvak wrote in the complaint. “The exercise of this market power has led merchants to charge excessive network and interchange fees, harming both claimants and consumers (including cardholders) through higher costs and reduced consumer welfare” .

The two companies account for more than 80% of all debit purchases, according to the complaint.

Disney sued after rejecting a $6 billion settlement that included a deal to cut transaction processing fees for eight months, in a nearly identical class-action lawsuit brought by retailers against Visa, Mastercard and major banks. Other big retailers also opted out of the deal to get better terms for themselves. In February, Amazon settled a month-long dispute with Visa over interchange fees that threatened customers who used Visa credit cards on the online retailer’s websites.

Disney and its lawyers declined to comment. Visa and Mastercard did not respond to requests for comment.