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Archives / 2012 / July
  • Will the Visa/MasterCard Interchange Fee Agreement Hold?

    If the proposed settlement in the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation case is approved, merchants will receive billions of dollars, a temporary Interchange rate reduction and the ability to surcharge card payment transactions. In return, the agreement releases Visa and MasterCard from future legal claims regarding Interchange, network rules, merchant fees and related issues by merchants.

    Both the National Grocers Association and the National Association of Convenience Stores say they will oppose the agreement on the basis that the agreement does not address how Interchange is set or the complexity of Interchange fee schedules. Target and Wal-Mart are not plaintiffs in this case, but have criticized the proposed settlement for similar reasons and … more

  • Payment Card Usage Surcharges

    In the proposed settlement of the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation case, merchants would win the ability to impose surcharges on customers who use card payments.

    However, according to analysis of the proposed settlement, the ability to surcharge customers includes numerous restrictions and requirements:

    The surcharge amount will be limited by a cap established by Visa and MasterCard and by card type (debit card surcharge allowances to differ from credit card surcharge allowances)

    Merchants will be required to notify Visa and MasterCard before surcharging begins.

    Merchants post signs notifying customers that they surcharge

    Merchants must include the surcharge amount of any fee on receipts

    Merchants are not allowing a surcharge on Visa and … more

  • 7 million retailers to share $7.25 billion proposed settlement

    An estimated 7 million retailers will be affected by a proposed settlement in the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation case.

    According to Reuters, it has been announced that Visa and MasterCard along with their card issuing banks have agreed to settle the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation case with U.S. retailers for $7.25 billion. If approved by the judge, it would be the largest antitrust settlement in U.S. history.

    According to reports, the settlement will include provision to allow stores to surcharge customers extra in an attempt to steer customers toward less expensive payments (although certain states laws prohibit the practice), will pay stores $6 billion and will lower interchange fees by the equivalent of … more

  • PCI guidance for accepting payments using a smartphone

    Our PCI Compliance and Security partner ControlScan plans to integrate the SAQ P2PE-HW into our merchant portal by the end of the quarter, as it’s expected that P2PE certified solutions will be listed on the PCI SSC website later this year. We will alert our merchants as soon as the SAQ P2PE-HW is available.

    The PCI SSC Releases its P2PE SAQIn May the PCI Security Standards Council (SSC) published a fact sheet to offer guidance for merchants evaluating technology to accept payments using a smartphone or iPad/tablet. The fact sheet explains how a point-to-point encryption (P2PE) solution can be leveraged to secure mobile payments.

    As a next step in its P2PE program, the SSC has released a P2PE Self-Assessment Questionnaire (SAQ). The new, reduced SAQ (SAQ P2PE-HW) is similar to SAQ … more

  • Payment Card Interchange Fee and Merchant Discount Antitrust Litigation

    Visa Inc and MasterCard Inc are moving closer to a settlement in a seven-year old case named In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation. Most analyst are predicting a settlement and possibly by the end of July. One of the possible settlement outcomes could be a reduction in interchange fees which is expected to have a negative impact on bank stocks. If your holding bank shares of major card issuers, be warned. If you are a small merchant, we will keep you posted here about what it means to you and anything you will need to do. more

by Ty Hardison

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