Visa, MasterCard Accused Fixing Prices, Breaking Antitrust Laws By ATM Group

A group representing operators of automated teller machines filed a lawsuit against Visa (V.N) and MasterCard (MA.N) alleging that the credit and debit card issuers violated antitrust laws by fixing the price of ATM access fees.

The suit, which seeks national class action status, was filed on Wednesday in the U.S. District Court for the District of Columbia on behalf of the National ATM Council and several independent ATM operators.

The suit, charging restraint of trade, alleges that Visa and MasterCard network rules prohibit ATM operators from offering lower prices for transactions over PIN-debit networks that are not affiliated with Visa or MasterCard.

The suit alleges that the price fixing artificially raises the price consumers pay for ATM services, limits ATM operator revenue, and violates antitrust laws.

It claims that rules by the card issuers prevent an operator from offering consumers a discount for ATM transactions not completed over Visa or MasterCard networks.

"Visa and MasterCard are the ringleaders, organizers, and enforcers of a conspiracy among U.S. banks to fix the price of ATM access fees in order to keep the competition at bay," Jonathan Rubin, of the Rubin PLLC law firm which represents the plaintiffs, said in a statement.

The proposed class, should the case be granted class action status, would be comprised of independent operators of some 200,000 ATMs in the United States, Rubin said.

Visa declined to comment. MasterCard did not immediately return calls seeking comment on the lawsuit.

The case is The National ATM Council, Inc et al v. Visa, Inc et al and MasterCard Inc et al, U.S. District Court, District of Columbia, 11-cv-01803.

(Reporting by Bill Berkrot and Noeleen Walder; Editing by Richard Chang)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[imusintheevening]

04:45 AM on 10/15/2011

Until enforcement is demonstrated this will remain rampant.

[maxfax]

11:26 PM on 10/14/2011

Prosecute business for violating "anti-trust laws" what a novel idea? Do we still have those laws?

[Dosadi]

10:41 PM on 10/14/2011

Forget the worthless right wing propaganda. United we stand, divided we fall. We all have to be in this together or they pick us off one at a time.

[diamonds61]

07:45 PM on 10/14/2011

Caught in the act.

[nickmantas]

04:20 PM on 10/14/2011

Newsflash! this has been happening since the 1980's, it is precisely the reason VISA and Mastercard exist.

[StopMakingSense2]

11:38 AM on 10/14/2011

So at what point does one admit unbridled capitalism is a failure? Any chance we can go back to what was working and ignore the republicans into obscurity? What they want can be found in most 3rd world countries. Little government, few rules or regulations, almost no taxes. It should be an economic paradise but it's not. Maybe some thought should be given to why that is? Wont happen since it would make a conservatives head explode as their dogma fights for survival! In any case pick one and leave instead of trying to turn us into a 3rd world country.

[ecurbwl]

08:37 PM on 10/13/2011

Boo Hoo ! If you don't like the fees-----------------------don't use the ATM. I get a real kick that people will pay 60, 90, or in excess of 120 dollars plus, a month for a cell phone to "chit chat" but scream when they have to pay a $3.99 to $7.00 fee to withdraw money from an ATM. Figure-out your priorities and go with it !

[Dosadi]

10:35 PM on 10/14/2011

Why should you pay money to get your money out of the bank? The bank makes money off your deposits but does not give you a cut. The reason the banks rushed everyone over to ATM's was to save money on tellers fees. Now they are just being greedy.

[olddognewtrick]

10:17 AM on 10/15/2011

Keep it under the mattress at home! No need to use one of those big bad banks. It's your money...

[imusintheevening]

04:46 AM on 10/15/2011

Yeah, banks should just be able to take all your money and then decide if they want to lend you some.

[ConservativeChampion]

08:14 PM on 10/13/2011

As a shareholder of these two fine companies, I say so what. I want them to make even more money. If someone thinks these companies are making too much money, why cry? Instead, buy the shares.

[Marcus01]

09:37 PM on 10/13/2011

I chucked my credit cards, and urge everyone else to do the same. Pay as you go, and starve the greedy SOBs.

[DesertShores]

07:23 PM on 10/14/2011

You are exactly what is wrong with capitalism. Greed!! Do you think that most people who are using debit cards can afford to be invested with these "fine" companies? You are one of the stockholders that cause companies to screw everybody to make the next quarter look good at the expense of the long term good. The taxpayers bailed you out. I hope your stocks tank even more.

[beerbagger]

05:55 PM on 10/13/2011

Credit Unions don't gouge "members." Go rescue your money today and put some economic pressure on these TBTF banks. Banks don't make their profits from deposit interests, they get fat and rich for holding your money hostage with service fees and penalties.

[uberengineer]

08:26 PM on 11/22/2011

Some Credit Unions are better than others! I "joined" Safe America Credit Union by depositing $25 in a savings account with the intention of getting a credit card from them. Not only did they NOT give me credit card (despite a credit score of almost 800 and a track record of NOT USING 80% of my available credit), but a few months later I noticed that ALL MY "SAVINGS" had DISAPPEARED due to ridiculously high FEES! They actually tried to justify $9/month in fees for taking on the "burden" of holding on to my $25. I have NEVER had any bank, even BofA try to justify charging me such ridiculous fees for NOT PROVIDING ANY SERVICES AT ALL (other than hanging onto my $25).

[beerbagger]

02:23 AM on 11/23/2011

Tis true... there are some CU's out there with ex-bankers and finance degree holders moving in on the landscape. They battle with the members and boards long enough to either physically outlast them or wear them down. It's fine print stuff... Like Elizabeth Warren wanted to take on. But people are stressed and fearful of losing their job so they sit on their hands and don't go over the fine print.

For the most part it takes lots of questions and investigating like everything else these days. And when worst comes to worst just ask anyone if they're ever willing to put the terms in writing. The answer to the fiduciary truth will reveal itself pretty quickly that way.

[cazsue]

05:07 PM on 10/13/2011

What can't we comment on the article about how millionaires pay less tax than the middle class?

[lovbuton]

05:11 PM on 10/13/2011

My question also!!!!

[frankieshoes1]

05:33 PM on 10/13/2011

we can here

[Flaming Moderate Wacko]

04:17 PM on 10/13/2011

Remember, Remember,
The Fifth Of November,
The Bank Changeover Reason, And Plot,
I Know Of No Reason,
Why The Bank Changeover Reason,
Should Ever Be Forgot!

[lqw]

06:49 PM on 10/13/2011

Actually it started October 1st. The banks are allowed to charge the fees because of an amendment added to the Dodd-Frank Act in 2010.  It is called the Durbin amendment. Dick Durbin, Democrat from Illinois.

[grundoboy]

07:47 PM on 10/13/2011

imagine a democrat that has ties to these companies? don't touch his money, just touch ours...

[Flaming Moderate Wacko]

01:48 AM on 10/14/2011

Nice try, but no cigar!

[majorwiblit]

03:51 PM on 10/13/2011

It is pretty sad,,,,when we are not shocked by every story we read about how working people
are getting________insert word,,,,,,,

we just take it for granted
When do we really,,get mad,,and do something??????/

[Flaming Moderate Wacko]

04:21 PM on 10/13/2011

Follow the Occupy Wall Street protests. People are demonstrating in the streets all across the nation. They are doing something, and that something is growing every day. Republicans, tea baggers, and Wall Street oligarchs don't get it, but the flood gates are opening, and will not be closed.
VIVA LA PEOPLES REVOLUTION!

[majorwiblit]

04:26 PM on 10/13/2011

I am,,,,
I am a 99'erTY

[jimofil]

06:29 PM on 10/13/2011

If you add up all of the Occupy Wall Street protesters, in all the cities across the country, you have far fewer protesters than in almost any Tea Party protest. So where does that leave you? And just a side note, to date NO Tea Party protester has been arrested, How many hundred Occupy Wall Street folks have been? Is it a thousand yet?

[getsit]

03:01 PM on 10/13/2011

Anybody left that doesn't think price fixing isn't going on? Monopolies everywhere. In media, electronics, bank fees. Another tax on the middleclass and poor.

[jimofil]

06:32 PM on 10/13/2011

It is really amazing if you think about it, here you are protesting about bank ATM fees for the poor. When else in history have the poor had a bank account, let alone an ATM card? By and large the poor in this country today live better than the middle class when I was growing up.

[kritteracres]

07:53 PM on 10/13/2011

jim boy you must have been raised in real poverty then.

[getsit]

01:21 PM on 10/14/2011

My parents were the working poor and they ALWAYS had a bank account. Even poor students have bank accounts. It's hard to even cash a check if you don't have a bank account. Those check cashing places charge too much money.

[Anonani]

02:59 PM on 10/13/2011

I just want to know who does not have his hand in my pocket? Everyday a new revelation that shows that no matter how little I have someone with big pockets full of money want the little that I've got.

[cazsue]

05:08 PM on 10/13/2011

It's the R's plan for America.

[jimofil]

06:35 PM on 10/13/2011

I wish I understood why you are complaining about banks and ATM fees or any other kind of banking fee for that matter. You can choose NOT to use an ATM. I personally really don't care if ATM fees go to ten or twenty bucks, because I don't use them. Don't like the fee, don't use the service. You really can get along without it.

Too bad the same cannot be said of taxes. We have absolutely no choice when Obama or the governor or mayor wants our money.

[Anonani]

06:44 PM on 10/13/2011

I wish that I understood people like you who think that I am supposed to live the life that you choose to live. I expect to be able to access my money any way that I choose without being gouged in the process.

[kritteracres]

07:53 PM on 10/13/2011

Or Bush/Cheney

[LastAngryWoman]

02:43 PM on 10/13/2011

Now I fully understand why sometimes folks post, "I'm shocked! SHOCKED, I tell ya!"