Reuters: Visa, Mastercard reach $38 billion swipe fee settlement, draw opposition
Doug Kantor, general counsel of the National Association of Convenience Stores, countered that the settlement doesn't give banks an incentive to lower rates they charge, but lets Visa and Mastercard "without any limitation" raise their own. "Merchants ought to be able to negotiate and get prices set with different banks, but this settlement prohibits that," Kantor, also a member of the Merchants Payments Coalition's executive committee, said in an interview.
READ MORE +
Financial Times: Visa and Mastercard forge deal to end long-term dispute with merchants
Some major trade bodies including the National Retail Federation and the Merchants Payments Coalition criticised the proposed settlement, saying it does not go far enough to address their concerns over swipe fees. ... Both groups said they were pushing for Congress to pass the Credit Card Competition Act, which the Merchants Payments Coalition estimates will save merchants $17bn a year by making it easier for large banks to process credit card payments on alternative card networks.
READ MORE +
PYMNTS/CPI: Visa and Mastercard Reach Landmark Settlement to End Longstanding Fee Dispute
The MPC has expressed opposition to the deal, contending that Visa and Mastercard’s fee reductions are insufficient. Jennifer Hatcher, a member of the coalition’s executive committee, said that the proposed cuts apply only to the portion of fees passed to banks, allowing the card networks themselves to potentially raise their own charges. Hatcher warned that “all of the supposed merchant and consumer savings could easily be canceled by Visa and Mastercard increasing their fees.”
READ MORE +
Finance Magnates: Visa and Mastercard Seek to Close 20-Year Antitrust Case With $38 Billion Deal
Merchant groups were quick to reject the new deal. The National Retail Federation and the Merchants Payments Coalition said it still leaves businesses paying too much to process card payment.
READ MORE +
Supermarket News: Retailers oppose latest interchange fee settlement offer
“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, chief public policy officer at FMI—the Food Industry Association and a member of the executive committee at the Merchant Payments Coalition.
READ MORE +
Hoodline: Honolulu Shops Brace For Swipe-Fee Shakeup As Visa, Mastercard Pitch $38B Deal
Retail trade groups didn’t mince words. The National Retail Federation labeled the draft agreement “all window dressing and no substance” and urged Judge Margo Brodie to reject it, arguing a tiny basis‑point trim won’t fix systems that let banks centrally set fees, per an NRF press release. The Merchants Payments Coalition and small‑business advocates also warned that because most consumer cards are rewards cards, merchants may have limited ability to steer customers toward cheaper options.
READ MORE +
Progressive Grocer: Visa, Mastercard Offer Revised Swipe Fee Settlement
“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,” noted Jennifer Hatcher, executive committee member of the Merchants Payments Coalition and chief public policy officer at Arlington, Va.-based FMI — the Food Industry Association. “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.”
READ MORE +
CSP Daily News: Retailers oppose latest interchange fee settlement offer
“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, chief public policy officer at FMI—the Food Industry Association and a member of the executive committee at the Merchant Payments Coalition.
READ MORE +
Digital Transactions: A Deal Looks No Closer In Merchants’ Long-Running Legal Battle Over Acceptance Fees
Merchant opposition to the expected settlement offer is driven by the networks’ failure to create a payments ecosystem that enables true pricing competition concerning acceptance costs, merchant groups argue. “That’s the central problem, and the settlement does not address it,” says Doug Kantor, a Merchants Payments Coalition executive committee member and general counsel for the National Association of Convenience Stores. “[The central problem] remains the reason why the lawsuit was brought in the first place.” The MPC, NACS, and the National Retail Federation issued statements Sunday opposing the expected settlement and calling for it to be rejected by the court.
READ MORE +
MPC Hill Blast: Asking for Strike 3
The credit card giants have tried multiple times to pull a fast one on Main Street by negotiating antitrust litigation settlements that allow them to continue their anticompetitive practices with legal immunity. According to the Wall Street Journal, they are at it again.
READ MORE +