News Release: File Claims 12/21/05

National Retail Federation News Release

For Immediate Release
Contact: J. Craig Shearman (202) 626-8134
shearmanc@nrf.com

WASHINGTON, D.C., December 21, 2005 — With the filing deadline only a week away, the National Retail Federation today urged retailers to quickly submit claim forms in order to receive their share of the $3.1 billion settlement in NRF’s successful lawsuit against Visa and MasterCard debit card rules.

“Hundreds of thousands of claim forms have been received, but many have not,” NRF Senior Vice President and General Counsel Mallory Duncan said. “Retailers who haven’t filed need to do so immediately. Retailers who don’t file the proper paperwork by the deadline could miss out on their share of this landmark settlement. It is extremely important that companies meet this deadline.”

Claim forms must be postmarked by December 28 or filed online electronically at www.inrevisacheckmastermoneyantitrustlitigation.com by the same date. Retailers who miss the deadline could be ineligible to receive funds from the initial distribution of the settlement in 2006 or from any subsequent distribution that might follow. Companies that have already received court-allowed extensions because of undue hardships or that have already submitted claims consolidation data are not affected. Details about how to file are available at the web site.

While a substantial number of the claim forms distributed this fall have been returned, a significant number remain outstanding. Consequently, there is a possibility that there could be a second distribution of funds in which merchants would receive an additional payment beyond the amount claimed. Duncan said the possibility of a second distribution is an important consideration for retailers contemplating selling the rights to their claim to a third party.

“A third party would not only receive the company’s initial claim but would receive any subsequent distribution as well,” Duncan said. “We strongly encourage companies to file themselves. The claim forms are very simple to complete and free assistance is available from the claims administrator.”

More than 8 million claim forms were mailed in September to merchants believed to have accepted Visa and MasterCard debit cards during the October 25, 1992-June 21, 2003, time period covered by the lawsuit. The forms include an estimate of merchants’ share of the settlement, where available.

Retailers with questions should contact the claims administrator, Garden City Group Inc., at (888) 641-4437. NRF members who need additional assistance may also contact NRF Member Relations Manager Angelica Rodriguez at rodrigueza@nrf.com. Information is also available on the NRF web site at www.nrf.com/debit.

The case was settled in 2003, but distribution of funds could not begin until the final deadline for appeals passed this May. The 1996 class-action lawsuit, brought by NRF and about 20 of the nation’s largest retailers, alleged that the “Honor All Cards” rule — which required retailers who accepted Visa and MasterCard credit cards to also accept their debit cards — violated federal antitrust law. Among other reasons, merchants objected to being required to accept signature-based debit transactions because they carried higher transaction fees, were slower and more fraud-prone than debit transactions activated by a PIN number.

Under the settlement, Visa and MasterCard agreed to initially lower transaction fees for signature-based debit cards by at least one-third effective August 1, 2003. As of January 1, 2004, the Honor All Cards policy ceased to exist, freeing retailers to negotiate what rates — if any — at which they would be willing to continue to accept the cards.

The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet and independent stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.4 million U.S. retail establishments, more than 23 million employees - about one in five American workers - and 2004 sales of $4.1 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.