Although U.S. retailers can now impose fees on Visa and MasterCard credit card transactions, retail chains that include Target, Macy's, and Wal-Mart Stores say they have no plans to do so. Surcharging is now an option for merchants using Visa and MasterCard networks because of a proposed lawsuit settlement reached between the card companies, large U.S. banks, and retailers. "We fully expect most retailers won’t surcharge credit cards with the abundance of alternatives available to consumers," says Consumer Action's Joe Ridout. However, he notes that smaller, independent merchants may be more willing to add surcharges, given the higher credit card transaction fees they pay to banks. Wal-Mart's Randy Hargrove says his company does not intend to start surcharging. "The proposed modification to the no-surcharging rule for Visa and MasterCard provides no benefit to customers or merchants such as Wal-Mart," he says. Wal-Mart, Target, and other large retailers say the settlement gives card companies an excessive amount of latitude to hike interchange fees in the future. Merchants indicating the possibility that they would add surcharges include Kroger, the largest U.S. grocery store chain.