In The News

Bloomberg: Banks Versus Merchants Carries On

Doug Kantor, an executive committee member of the Merchants Payments Coalition, which has been fighting the banks and credit card companies over the issue, said he expects “a lot of opposition” to the proposed settlement and says it could be rejected. The lobbying will continue, he said: “If anything this shows an even greater need for legislation and demonstrates the courts are just not equipped to set out how a competitive market could happen in the future.”

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.

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.”

Global Data/Yahoo Finance: Visa, Mastercard agree to $38bn settlement over merchant fee dispute

Retail trade group in the US, National Retail Federation and the Merchants Payments Coalition have voiced that the agreement still leaves businesses paying disproportionately high charges, particularly on widely used rewards cards.

Court Cast: Visa and Mastercard Unveil $38 Billion Deal to End Swipe Fee War — But Retailers Aren’t Buying It

Merchant groups, led by the National Retail Federation and the Merchants Payments Coalition, are already calling foul, saying the proposal fails to fix the fundamental imbalance that has allowed the two payment giants to dominate the market for years. “You can’t just tell 80% of your card customers you won’t take their cards — that’s business suicide,” one retail representative said, summing up the frustration.

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.)