Green Sheet

n what appears to be the end of a four-month heated standoff over debit interchange, Wal-Mart agreed on June 21, 2004 to begin accepting MasterCard-branded signature debit cards again for payment at all of its locations. In April 2003, MasterCard and Visa separately settled a class action lawsuit in which Wal-Mart and millions of other retailers objected to the Associations' honor all cards policies. The Associations agreed to throw out the policy, pay the retailers $3 billion and reduce fees it charges them for debit transactions.

At the end of 2003, Visa struck a surprise signature debit deal with the giant retailer, and Wal-Mart looked to MasterCard to further concede its pricing. But the association wouldn't budge, and on Feb. 1, Wal-Mart said it would no longer honor MasterCard's signature-based, or offline, debit cards. In response, MasterCard issued a statement regarding the dispute: "Unfortunately, Wal-Mart feels comfortable limiting its customers' options when it comes to how they will spend their money." Wal-Mart and MasterCard declined to disclose whether MasterCard lowered its rates, or any other details about the recent agreement.