Nevo Hadas’ Post

Visa, mastercard settle long-running antitrust suit over swipe fees with merchants. (photo: AP) LONDON: Global payments processors <!-- -->visa and mastercard<!-- --> must face a new set of lawsuits over fees charged to <!-- -->retailers<!-- -->, after a <!-- -->London tribunal<!-- --> ruled on Friday that <!-- -->collective cases<!-- --> brought on behalf of merchants can proceed.The two firms already face a long list of lawsuits in London over multilateral interchange fees, which retailers pay when consumers use a card to shop.Visa and Mastercard are each being sued by hundreds of claimants at London’s <!-- -->competition appeal tribunal<!-- -->, which is managing the various cases together.Special purpose vehicle commercial and interregional card claims brought another set of lawsuits against visa and mastercard in 2022, seeking damages on behalf of merchants who were allegedly overcharged.The tribunal initially refused to certify its cases under the <!-- -->United Kingdom<!-- -->‘s collective proceedings’ regime, which is similar to class actions in the United States.However, the tribunal ruled on Friday that the cases would be certified, subject to any representations by other parties who might have an interest in the cases. !(function(f, b, e, v, n, t, s) { function loadFBEvents(isFBCampaignActive) { if (!isFBCampaignActive) { return; } (function(f, b, e, v, n, t, s) { if (f.fbq) return; n = f.fbq = function() { n.callMethod ? n.callMethod(...arguments) : n.queue.push(arguments); }; if (!f._fbq) f._fbq = n; n.push = n; n.loaded = !0; n.version = '2.0'; n.queue = []; t = b.createElement(e); t.async = !0; t.defer = !0; t.src = v; s = b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t, s); })(f, b, e, ' n, t, s); fbq('init', '593671331875494'); fbq('track', 'PageView'); }; function loadGtagEvents(isGoogleCampaignActive) { if (!isGoogleCampaignActive) { return; } var id = document.getElementById('toi-plus-google-campaign'); if (id) { return; } (function(f, b, e, v, n, t, s) { t = b.createElement(e); t.async = !0; t.defer = !0; t.src = v; t.id = 'toi-plus-google-campaign'; s = b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t, s); })(f, b, e, ' n, t, s); }; function loadSurvicateJs(allowedSurvicateSections = []){ const section = window.location.pathname.split('/')[1] const isHomePageAllowed = window.location.pathname === '/' && allowedSurvicateSections.includes('homepage') if(allowedSurvicateSections.includes(section) || isHomePageAllowed){ (function(w) { var s = document.createElement('script'); s.src=" s.async = true; var e =

Dysfunction in the Brand Family.... Judge Brodie indicates that her primary hesitation in ruling on the recent class action settlement with Visa and Mastercard is the survival of the "honor all cards" rule, something that merchants have lobbied persistently to remove. Their argument is not without merit: In today's complex card environment with 500+ interchange pricing levels, merchants don't know what it will cost to ring up the next sale, and their monthly card fee expense varies based on the mix of cards that shoppers present. What is less obvious to merchants is the money that both card companies have invested to make cards carrying their brand nothing less than a "license to buy" for the consumers that carry them. Nothing would damage the customer experience more for merchants than enticing consumers to engage in a shopping experience and then pulling the rug out at checkout by saying, "We do accept Visa cards, just not that particular kind of Visa card." Product names like Visa's "Signature" and Mastercard's "World Elite" already exist; maybe it's time to elevate those product names to Brand status? The brands would then flow into acceptance marks for merchants to use, eliminating confusion and setting clear expectations for consumers. Elevating the products to brands under the master brand provides a way for merchants to tell the world which cards they accept , and at the same time lets consumers know where they can use the specific Visa or Mastercard they carry in their wallet. Is there a realistic scenario where merchants stop accepting higher-priced cards if given the opportunity? Post your thoughts in the comments!

The rejection of the Visa/Mastercard settlement means that the proposed reductions in credit card interchange fees and changes to surcharging rules will not take effect. This maintains the status quo, where merchants continue to face higher fees and restrictions on surcharging, impacting their operational costs and pricing strategies. What are the next steps for merchants? The rejection of the Visa/Mastercard settlement means merchants will continue to face higher interchange fees and restrictions on surcharging. This impacts their operational costs and pricing strategies. Merchants may need to explore alternative payment methods, enhance fraud prevention measures, or advocate for regulatory changes to address these challenges. #Fees #Merchants #FundingNews

The recent decision by U.S. District Judge Margo Brodie to reject the $30 billion antitrust settlement proposed by Visa and Mastercard marks a significant moment for retailers. This settlement aimed to limit swipe fees, but many merchants, especially small businesses, felt it did not go far enough to address the high costs and control that card networks maintain over transactions. The refusal to approve the settlement underscores the need for a fairer system that genuinely benefits merchants, potentially leading to more favorable terms or even a trial. As this case progresses, it's crucial for retailers to stay informed and advocate for solutions that promote equitable and transparent fee structures. #RetailNews #Antitrust #SwipeFees #Visa #Mastercard #SmallBusiness #FairTrade #MerchantRights #Retailers #CreditCardFees #PaymentProcessing

Did you hear about the successful antitrust suit against MasterCard and Visa last month? If you're wondering what the settlement means to your business - and your swipe fees - read this week's Specialty Shop Retailing blog post. #independentretailers #shoplocal #creditcardfees #retailing #smallbusiness

An Appeals Court approved a settlement of Visa and Mastercard Antitrust Suit. This means that if you accepted credit cards at your business, you are entitled to a refund. Here's what you need to do: ✅ apply to be part of the antitrust suit ✅ submit your merchant processing statements for the suit period ✅ contact us for help in applying This is a simple way to infuse cash into your business. Contact us today to learn how to apply. #AntiTrust #Visa #MasterCard

Visa and Mastercard agree to $30 Billion deal favouring US merchants #Visa and #Mastercard have reached a historic settlement with US merchants. This agreement concludes nearly two decades of litigation, marking a significant victory for retailers across the United States. After enduring a protracted legal battle since 2005, Visa and Mastercard have agreed to a settlement that will lower and cap credit card interchange rates until 2030. This move is set to save merchants a staggering $30 billion over the next five years, positioning this agreement as one of the largest in US antitrust history. The primary beneficiaries of this settlement are US merchants, with a special emphasis on small businesses. Visa has highlighted that over 90% of the firms benefitting from this deal are small enterprises, underscoring the settlement's focus on supporting the backbone of the American economy. This settlement provides financial relief to merchants but also introduces a level of flexibility in pricing strategies. For the first time, merchants will have the liberty to charge different prices based on the credit cards used by shoppers, empowering them to navigate the complex terrain of transaction fees more effectively. The resolution of this long-standing dispute owes much to the relentless efforts of figures such as Robert Eisler, co-lead counsel for the merchants, who emphasized the settlement's role in eliminating anti-competitive restraints and delivering meaningful savings to both small and large US merchants. On the corporate side, Lawrence Kim, President of North America for Visa, underscored the settlement's focus on addressing the critical pain points identified by small businesses through direct negotiations. As the #fintech industry and its stakeholders closely watch, this settlement awaits court approval to officially take effect. The article on Reuters in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

Big win for consumers? 🤔 Visa and Mastercard will reduce credit card swipe fees for merchants for the next five years https://lnkd.in/gq5DRnKi This could mean lower prices for consumers and potentially more marketing budget for retailers? #retail #marketing #ecommerce #payments

Judge Swipes Away $30 Billion Visa, Mastercard Antitrust Settlement https://ift.tt/M86C5ok The antitrust settlement began when merchants first filed a lawsuit claiming that Visa and Mastercard conspired to fix card processing fees at an artificially inflated rate. An agreement between the credit card issuers and merchants had been reached in March 2024 to temporarily lower card swipe fees. The deal also would have prevented swipe fee increases until 2030. Now, the status of this deal is in limbo, as Visa and Mastercard, which control about 80% of the market, must decide whether to attempt to negotiate a better deal with merchants or take their chances at trial. Credit card swipe fees average more than 2% for each transaction but can be nearly 4% for premium cards. According to the National Retail Federation (NRF)—which opposes the above agreement—credit and debit swipe fees cost retailers and their customers more than $170 billion a year. Though the settlement in March would have decreased the average swipe fee by at least .04% for three years and at least .07% below the average for five years, the NRF argued that card fees would still be too high and do nothing to mitigate the near monopoly Visa and Mastercard have over credit card transactions. Find the Best Credit Cards for 2024 No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers. Finance via Forbes Advisor https://ift.tt/1j8GLXr June 27, 2024 at 11:34AM

Visa and Mastercard agree to settle with US merchants over swipe fees, which could have significant implications for both businesses and consumers #mastercard #visa #fees #merchants 1️⃣ Visa and Mastercard have announced a major settlement with U.S. merchants, potentially ending nearly two decades of litigation over the fees charged every time a credit or debit card is used in a store or restaurant. 2️⃣ The deal would lower and cap Visa and Mastercard fees and allow small businesses to collectively bargain for rates with the payment processors. 3️⃣ The lowered fees would be only for a limited period of time — three to five years — after which the fees would return to their current levels. 4️⃣ Swipe fees are calculated as a fixed fee plus a percentage of the sales total, typically about 1% to 3%. 5️⃣ The settlement is in addition to a 2023 financial $5.54 billion settlement between Visa and Mastercard and 18 million businesses that accepted Visa or Mastercard for 15 years up to Jan. 25, 2019.