On The Web

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Use

Big Banks on Defense After Fed Sides With Retailers on Debit Swipe Fees

May 12 2021

• in
• Interchange

“For nearly a decade, the Federal Reserve avoided choosing sides in the protracted, high-stakes dispute between banks and retailers over debit card fees. But after the Fed last week embraced one of the main arguments made by merchants, many observers believe that more bad news is coming for large and midsize banks. The Fed is […]

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Use

Visa, Mastercard Delay Credit Card Swipe Fee Increases Amid Criticism From Lawmakers

March 16 2021

• in
• Interchange

“Visa Inc. V, 0.76% and Mastercard Inc. MA, -0.12% are postponing planned credit-card fee increases that were set to kick in this year after the plans drew criticism from lawmakers. Citing the continuing effects of the coronavirus pandemic on businesses, Visa and Mastercard said they will hold off on increasing interchange fees for merchants until next April.”

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The Architect of Debit Price Caps Attacks Visa And Mastercard for Planned Credit Card Hikes

March 12 2021

• in
• Interchange

“The U.S. Senator who gave his name nearly a decade ago to a law that caps debit card interchange made it plain Thursday he now has the rates merchants pay for credit card acceptance squarely in his sights. Commenting during a meeting of the Senate Judiciary Committee, which he heads, Sen. Dick Durbin, D-Ill., accused […]

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Systems

Lawmakers Urge Credit-Card Companies Not to Raise Interchange Fee Rates

March 5 2021

• in
• Cards
• Interchange

“With financial companies set to increase interchange fees next month, two federal lawmakers are asking them to postpone the hike. On March 3, U.S. Senate Majority Whip Dick Durbin (D-Ill.), chair of the Senate Judiciary Committee, and U.S. Representative Peter Welch (D-Vt.) sent a letter to the CEOs of Visa Inc. and Mastercard Inc. urging […]

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Interchange Adjustments Will Add a Net $889 Million to Merchants’ Costs, an Analysis Says

March 2 2021

• in
• Interchange

“With the two big payment networks set to raise by hundreds of millions of dollars the cost U.S. merchants pay for card acceptance, e-commerce merchants could see fee boosts while some segments—like travel-and-entertainment and low-ticket-value, quick-service merchants—could see some reductions.  In total, rate tweaks scheduled by Visa Inc. and Mastercard Inc. for next month will […]

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Industry

Covid-19 Shopping Makes Card Fees a Bigger Burden for Merchants

February 24 2021

• in
• Interchange

“Visa Inc. and Mastercard Inc. are planning to raise swipe fees for some types of credit-card purchases in April, adding to the squeeze felt by restaurants, retailers and other merchants already struggling through the Covid-19 pandemic. What’s more, customers’ switch to online shopping during the pandemic—a trend heralded for keeping businesses afloat when people are […]

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Regulation

With a Federal Lawsuit, Intuit Challenges the Card Networks’ Interchange Regime

February 23 2021

• in
• Interchange

“Lawsuits brought by merchants against Visa Inc. and Mastercard Inc. have become almost routine for the two network giants, but now they face an unusual action—a suit from Intuit Inc., which is not only a card-accepting merchant but also an independent sales organization and payment facilitator. Filed Feb. 19 in U.S. District Court for the […]

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Independent Grocers Ask Feds to Rein in E-commerce Credit Card Fees As Online Orders Explode

February 3 2021

• in
• Interchange

“A group of independent grocers is pushing the federal government to rein in credit-card companies charging high fees for online purchases, as web orders for groceries surge during the pandemic. The Canadian Federation of Independent Grocers (CFIG) on Monday sent a letter asking Ottawa to revisit its 2018 agreement with Visa and Mastercard that put […]

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Use

Mastercard, Visa Finalize EU Card Probe by Agreeing to Cut Fee

April 29 2019

• in
• Interchange

“The European Commission makes legally binding Mastercard’s and Visa’s  commitment to reduce “multilateral interchange fees”, or fees charged to retailers when foreigners use their credit or debit cards in EU region. The commitments, which will cut the inter-regional MIFs by on average 40%, “will significantly reduce the costs for retailers in the EEA when they […]

On The Wires

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Retailers Sue Fed Over Failure to Follow Congress’ Direction on Debit Card Swipe Fees

April 30 2021

• in
• Interchange

“Retailers filed a lawsuit today seeking to have the Federal Reserve lower its 10-year-old cap on “swipe” fees banks charge to process debit card transactions, saying the agency wrongly applied federal law and that merchants have paid billions of dollars more than intended by Congress while banks’ costs have fallen…The suit against the Federal Reserve […]