Antitrust Claims by Online Credit Card Companies

The Plaintiff, a processing service for Internet credit card transactions claimed that MasterCard Internationals refund policy with regard to fraud violated the Sherman Act. Under such policy, Internet merchants were barred from disputing a claim of fraud. The court observed that as other payment card brands were available in the market that provided partners with more favorable terms, Internet merchants had a choice to cease accepting the MasterCard’s payment cards or, in the alternative, they could inform customers that they preferred other brand as the said refund system was burdensome. As a result, the court held that the Plaintiff did not have standing because it could not show that it suffered an antitrust injury and dismissed the Plaintiffs’ claim.

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