As part of the settlement, card processors agreed to lower the credit interchange rate for eight months and to eliminate terms that prohibit merchants from charging consumers extra fees at the register for purchasing with plastic. Wal-Mart said, however, that the settlement will allow credit card companies to raise fees on consumers in the future.
“As Wal-Mart continues to seek reform that will provide transparency and true competition among financial institutions, we encourage all merchants to put consumers first and reject the settlement,” Wal-Mart officials said, according to International Business Times.
Additionally, as many retailers already offer cash discounts and other incentives to use cash, experts have posed questions over how effective the terms of the settlement will be in protecting consumers from extra fees.
The National Association of Convenience Stores and Target have also echoed Wal-Mart’s concerns.
“Not only does the proposed settlement fail to introduce competition and transparency, it actually provides Visa and MasterCard with the tools to continue to shield swipe fees from market forces,” Tom Robinson, the president of the NACS, said, International Business Times reports.