Disney pays credit card fees in accordance with the date of application – The Hollywood Reporter

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

According to court documents, Disney dismissed the lawsuit. Terms of the agreement were not disclosed.

The lawsuit revolves around interchange fees, which credit card companies charge for every transaction to cover costs associated with payment processing and authorization. Merchants have long argued that the presence of Visa and Mastercard in the marketplace allows them to price those fees, which ultimately leads to higher prices for customers.

“Visa and MasterCard and their members have acquired and maintained market power in the merchant credit and merchant debit markets in the United States,” said Sanford Litvack, on behalf of Disney, wrote in the complaint. “This exercise of market power has caused merchants to overpay in conversion and network fees, harming both Plaintiffs and consumers (including cardholders) due to higher costs and reduced fees. consumer welfare.”

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

Disney sued after opting out of a $6 billion settlement, including an agreement to reduce transaction processing fees for eight months, in a nearly identical class-action lawsuit filed by retailers. against Visa, Mastercard and major banks. Other major retailers also opted out of the deal to get better terms for themselves. In February, Amazon resolved a months-long standoff with Visa over conversion fees that threatened to prevent customers from using Visa credit cards on online retailer websites.

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