The perennial dispute between the big banks and the card processing network kingpins, notably Visa and MasterCard, seemed to crest in 2011 with the passage of the Durbin Amendment.

The severe cut in the interchange fee paid by retailers to banks was a watershed event and many think that the big merchants won a huge victory. But the Durbin Amendment was merely one battle in a war that will rage for years, producing yet more fallout, perhaps soon.

TheStreet.com notes that as of December 23, Visa disclosed "it had added $1.565 billion to an existing litigation escrow account it has had since at least 2008, the year of its initial public offering. The account now stands at roughly $4.3 billion."

That's more than 10 times the $425 million Visa had in reserves for litigation as of Sept. 30. So why has it jacked legal reserves now? The issue seems to be a seven year legal dispute pitting the card networks and banks against merchants in a dispute centered on interchange fees. A trial is set for September 2012.

At least one analyst thinks a settlement will be reached before a trial commences, and we would have to agree. Still, it's smart for the card company to build reserves, which it can always reverse later.

My sense is that the issue of interchange fees has yet to be settled. Banks are fighting back against the merchants, noting that in some cases retailers have actually hiked prices. In general, few are slashing prices the way some of the Durbin Amendment proponents predicted. Legal challenges may end up prevailing. In any case, all this adds to the uncertainty over banks and card processing networks.

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