Consumers love plastic and tap-to-pay, but vendors are stuck with inflated costs in an uncompetitive market.
networks. Since merchants are not allowed to pick and choose which cards they accept, the issuing banks do not compete to win the favor of merchants, according to the suit. Member banks agree to default fees set by Visa and Mastercard so they are not incentivized to undercut each other on price and instead benefit from inflated fees, the suit argues.
As a result, there are no forces driving interchange fees down and merchants have few options for avoiding them. Interchange fees are set at varying levels depending on the type and size of the merchant and the consumer’s card, according to the suit. Credit card interchange fees typically range between. Visa declined to comment on pending litigation and Mastercard did not respond by the time of publication.
“As the number of interchange categories has increased dramatically, Visa and Mastercard have captured ever-greater margins through increased opacity and complexity,” the lawsuit reads.of U.S. consumers holding at least one credit card, merchants have little choice but to accept them all, especially as U.S. consumers become accustomed to paying with virtual cards stored on digital wallets in addition to the traditional plastic variety.
In order to accept card payments, merchants must agree to Visa and Mastercard network rules and fees. Both companies started out as associations of banks which worked together to govern the networks. In 2008 and 2006, respectively, they became public companies.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Block Sues Mastercard And Visa Alleging Inflated Merchant FeesBlock is accusing payment-card networks and their member banks of charging inflated fees and using their market power to sustain anticompetitive practices.
Read more »
Mayor Adams announces 5-borough series of hip-hop block parties in AugustThe mayor, who appeared alongside rap icon KRS-One at City Hall, declared that 'New York should be celebrating a genre that we created' for its 50th anniversary in August.
Read more »
Bitcoin block 800,000 mined — What’s next?Tick tock, next block. Bitcoin network produces 800,000th block - with the next halving less than a year away!
Read more »
Jesuits confirm expulsion of a priest artist and lament that Vatican norms block harsher sanctionsThe Jesuits say a famous artist priest has been definitively expelled from the religious order for sexually, spiritually and psychologically abusing women.
Read more »
Bitcoin Network’s High Difficulty Levels Poised to Ease Amid Longer Block Intervals – Mining Bitcoin NewsStatistics show Bitcoin's difficulty is poised to decline by an estimated range of 3.9% to 4.04% come July 26, 2023.
Read more »
San Antonio sues Texas over new law curbing city’s authorityThe city’s lawsuit challenges the validity of House Bill 2127, which would prevent cities like San Antonio from making or enforcing local laws on issues like evictions, employment benefits, or a host of other subjects.
Read more »