ATM Operators Take On Credit Card And Banking Giants To Win In Court

WASHINGTON -- Independent ATM operators have won an important legal victory. After more than two years following the dismissal of a lawsuit over price fixing on the part of credit card companies and large banks, the U.S. Court of Appeals for the District of Columbia has reopened two class action suits. The lawsuits, brought by independent ATM operators and consumers, allege that Visa, MasterCard, Bank of America, JPMorgan Chase and Wells Fargo established fee levels for out-of-network ATM use that were anticompetitive and illegal.

The case somewhat mirrors a recent court victory over American Express by merchants. American Express is appealing that decision.

According to the lawsuits, Visa and MasterCard enacted rules that protected them from competition from lower-cost ATM networks. These rules, according to the grievance, blocked ATM operators from charging less when networks competing with the credit card companies processed transactions.

If successful in court, lower-cost networks could provide a reduction in fees for both businesses and consumers.

SOURCE:

Sam Osborn et al v Visa Inc et al, U.S. Court of Appeals for the District of Columbia, No 14-7004