Action against HSBC dropped

The Commerce Commission said yesterday it had dropped action against HSBC over alleged price-fixing of interchange fees involving credit cards but was proceeding against other financial institutions and credit card companies Visa and Mastercard.

The watchdog in November issued proceedings against HSBC, Visa, Mastercard and nine other financial institutions. HSBC said it was not involved in credit card issuing or acquiring markets in New Zealand.

The commission agreed HSBC had limited involvement and it and other defendants agreed to HSBC's release from the proceedings.

Interchange fees are charged by credit card companies to retailers as part of the fees they pay to banks.