Walmart and Merchants Challenge Credit Card Fee Settlement in Court
Walmart, along with approximately 1,000 other merchants including Circle K and members of the National Association of Convenience Stores (NACS), is challenging a proposed credit card fee settlement. The retailers argue that the agreement grants Visa, Mastercard, and major banks excessive immunity while providing only temporary relief to merchants. They claim the settlement violates their constitutional rights under the Fifth Amendment's takings clause by forcing participation without proper compensation. The case involves multidistrict litigation overseen by U.S. District Judge Brian Cogan in New York’s Eastern District. The proposed settlement, which received preliminary approval in June 2026, aims to reduce credit interchange fees and allow merchants more control over accepting certain high-cost cards. However, Walmart and other large retailers have previously filed similar objections without success. The litigation has a long history dating back to 2005, with prior settlements rejected by courts. A final decision on the current settlement is expected before year-end after a hearing scheduled for November.
Topics: antitrust credit_card_fees legal_dispute payments_system