Square Users’ Fee Fight With Visa, Mastercard Explored by Judges

A panel of Second Circuit judges Thursday picked at whether millions of businesses that accept payments using Square are direct or indirect purchasers of payment-processing services, the key issue affecting whether they are part of a $5.6 billion damages settlement.

The Square-accepting businesses argue that a federal district court erroneously swept them into a class settlement with Visa Inc. and Mastercard Inc. to resolve antitrust litigation over the fees.

During oral arguments, Judge Michael H. Park for the US Court of Appeals for the Second Circuit said both parties have facts to support their stances about whether Square itself, now ...