Retailers suing debit card issuers

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Tuesday, Jan. 25, 2000 | 10:44 a.m.

THE ASSOCIATED PRESS

NEW YORK -- Wal-Mart and other large U.S. retailers are seeking $8.1 billion in damages from Visa and MasterCard for alleged debit card antitrust violations, the Wall Street Journal reported today.

In a lawsuit in U.S. District Court, the retailers accused Visa USA Inc. and MasterCard International of using monopoly power in credit cards to dominate debit cards, forcing them to pay high transaction fees and increase costs to consumers.

The damage estimate represents alleged overcharges by the credit-card companies since 1992. If the retailers win, the damage award would triple under antitrust law to $24.3 billion.

Wal-Mart has been joined in the lawsuit by Sears, Roebuck & Co., Vons grocery stores owner Safeway Stores Inc., Limited Inc., Circuit City Stores Inc. and others.