A U.S. federal judge has approved a $7.25 billionsettlement between merchants and Visa Inc. and
MasterCard Inc. overcredit card transaction fees.A group of 19 merchants and tradegroups sued the companies
in 2005, alleging they conspired to fix feescharged to stores for handling credit card payments. A
settlement wasreached in last year but some retailers rejected it, in part because of aprovision that barred
future lawsuits.The $7.25 billion settlement figure does not reflect companies that opted out.Thesettlement
also allows merchants to tack on surcharges for credit cardtransactions to help offset these fees. Judge
John Gleeson said theagreement has the "potential to unleash a new competitive force oninterchange
fees."MasterCard of Purchase, N.Y., said the finalapproval marks an important milestone in putting the
litigation behindit. San Francisco-based Visa also said the settlement is a significantachievement and said
it is fair for all parties involved.Not all retailers are pleased with the final approval though.Anumber of
the nation’s largest retailers, including Target Corp. andMacy’s Inc., were among those that rejected the
settlement last year.And the National Retail Federation, the world’s largest retail tradeassociation, said
Friday that the settlement is "deeply flawed". Thegroup said it will do nothing to reduce swipe
fees or keep them fromrising of the future."A decision to approve it violatesestablished law and common
sense," NRF’s general counsel Mallory Duncansaid in a statement. "We are reviewing the ruling and
will take whateversteps are necessary to protect the rights of merchants and safeguardthe pocketbooks of
their customers."Copyright 2013 The Associated Press. All rightsreserved. This material may not be
published, broadcast, rewritten orredistributed.