Visa, MasterCard Object to Fee Ruling

Visa International Inc. and MasterCard International Inc. objected to a judge’s preliminary ruling over foreign-exchange conversion fees that could force them to pay $500 million in refunds.

The credit card companies were sued in 2000 by a consumer who accused them of concealing exorbitant surcharges for foreign purchases. After a trial, Judge Ronald Sabraw in Oakland issued a preliminary decision that the companies inadequately disclosed the costs.

Lawyers for both companies said it is up to the banks that issue Visa and MasterCard credit cards to decide how to alert users about a 1% fee levied when they make purchases overseas. Lawyers told Sabraw that the fee is disclosed in cardholder agreements.