MPC In the News

Payments Dive: 8 pros, cons of Visa-Mastercard pact

Swipe fees on Visa and Mastercard credit cards totaled a record $111.2 billion last year, 11% higher than in 2023 and triple the cost a decade earlier, the Merchant Payments Coalition said in March, citing data from the Nilson Report.

USA Today: Visa, Mastercard reach $200 billion deal over swipe fees. Will you see savings?

The deal would save nothing for consumers, said trade groups like National Retail Federation, Merchant Payments Coalition, National Association of Convenience Stores and Retail Industry Leaders Association.

U.S. Sun: SWIPE SCANDAL Visa and Mastercard speak out after $200b ‘swipe fees’ deal — but customers call it a ‘smoke and mirrors’ move

Bloomberg: Will Retailers Really Deny Premium Credit Cards?

“Visa and Mastercard keep thinking that they can fool the court,” said Doug Kantor, general counsel at the National Association of Convenience Stores (and MPC Executive Committee member). “But there will be lots and lots of opposition explaining to the court that what Visa and Mastercard are trying to do doesn’t make sense and shouldn’t resolve the case.”

Cox Media: Visa, Mastercard reach $38B settlement with merchants over swipe costs

The National Retail Federation and the Merchants Payments Coalition said that businesses will still have to pay too much to allow the use of Visa and Mastercard. But they’re in a difficult position. Stores can either pay the fees or not accept about 80% of credit cards used, the groups said.

Retail Touchpoints: Merchants Protest Visa-Mastercard ‘Swipe Fee’ Settlement, Again

“Achieving a settlement that works to reverse current illegal and anticompetitive practices of Visa and Mastercard should be straightforward, but this attempt fails once again and should be rejected,” said Jennifer Hatcher, MPC Executive Committee member and Chief Public Policy Officer of the Food Industry Association in a statement. “The courts have emphatically rejected these settlements twice, but now the card industry is trying again to get legal protection while offering little in return to merchants. Under this proposal, Visa and Mastercard would get to keep fixing swipe fees while Main Street businesses and customers would pay the price.” Hatcher called the proposed fee reduction “miniscule” and pointed out that because it only applies to interchange — the portion of swipe fees that goes to card-issuing banks — Visa and Mastercard would still be able to raise their own fees without any limits.

Finance Feeds: Visa, Mastercard Agree to $38 Billion Swipe-Fee Settlement After Judge’s Rejection

Merchant groups remain unconvinced. The National Retail Federation and the Merchants Payments Coalition said the proposal still leaves swipe fees too high, especially on rewards cards that dominate consumer spending. “You can’t just suddenly tell more than 80% of your card customers you’re not going to take their cards,” said NRF general counsel Stephanie Martz. “You would lose a lot of business.” Doug Kantor, general counsel of the National Association of Convenience Stores, said the deal lets Visa and Mastercard raise their own rates “without any limitation” and doesn’t allow merchants to negotiate directly with banks. “Merchants ought to be able to negotiate and get prices set with different banks, but this settlement prohibits that,” he said. (Martz and Kantor are both members of the MPC Executive Committee.)

Retail Systems: Visa and Mastercard agree revised settlement to cut interchange fees and loosen card acceptance rules

Doug Kantor of the National Association of Convenience Stores (and MPX) said the deal lets Visa and Mastercard raise fees they control, adding: “Merchants ought to be able to negotiate and get prices set with different banks, but this settlement prohibits that.”

Restaurant Business Magazine: Proposed swipe-fee settlement does little to resolve pain felt by restaurant industry merchants

Jennifer Hatcher, chief public policy officer at the Food Industry Association and a member of the executive committee at the Merchant Payments Coalition, urged the District Court to reject the current settlement as well. “Achieving a settlement that works to reverse current illegal and anticompetitive practices of Visa and Mastercard should be straightforward, but this attempt fails once again and should be rejected,” she said.

The Paypers: Visa and Mastercard revise USD 38 billion swipe-fee settlement

With this new accord, merchants, including the NRF and the Merchants Payments Coalition, (voiced) opposition, saying that the concerns raised by the New York judge regarding violating US law are still not addressed. Additionally, those who oppose say that businesses will still be paying too much to accept the popular reward cards that dominate the card market.