Credit Unions Today: Merchants Asking To Participate In Suit Over Illinois Swipe Fees Law
Three Merchants Payments Coalition member associations have asked permission to take part in a lawsuit over Illinois’ new law banning credit card swipe fees on sales taxes and tips, saying merchants’ perspective is needed to understand the high cost the fees impose on small business and their customers, the MPC reported.
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“In a way, this is becoming a national issue,” says (MPC Executive Committee member) Doug Kantor, general counsel for the National Association of Convenience Stores, who confirms NACS will be filing an amicus brief and requesting to intervene in the case. “Our concern is that banks can’t farm out credit and debit card pricing to non-banks, such as Visa and Mastercard, and expect to be protected under the National Bank Act” when state laws are passed that impact pricing.
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“This is further evidence that Visa has regularly blocked competition in the debit card market,” said Doug Kantor, general counsel for the National Association of Convenience Stores and a leader of a cross-industry advocacy group called the Merchant Payments Coalition. The National Restaurant Association is a member of the coalition. “While this case is focused on debit cards, it shows how we desperately need competition over credit card swipe fees, which currently face no competition at all,” Kantor continued in his statement.
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The Merchants Payments Coalition, which represents retailers, proclaimed that the suit, while focused on debit cards, “shows how we desperately need competition over credit card swipe fees, which currently face no competition at all,” according to spokesperson Doug Kantor.
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Multiple industry associations applauded the DOJ's actions, including the Merchants Payments Coalition, the National Retail Federation and the Retail Industry Leaders Association. "This is further evidence that Visa has regularly blocked competition in the debit card market," said Doug Kantor, MPC executive committee member and NACS general counsel. "Visa has relentlessly flouted the law to maintain a monopoly over setting fees for transactions made with cards issued under its brand and for processing those transactions. While this case is focused on debit cards, it shows how we desperately need competition over credit card swipe fees, which currently face no competition at all."
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The Merchants Payments Coalition also came out in support of the lawsuit, arguing that it is a response to Visa’s ongoing efforts to block competition in the debit card market. “Visa has relentlessly flouted the law to maintain a monopoly over setting fees for transactions made with cards issued under its brand and for processing those transactions,” Doug Kantor, an MPC executive committee member and general counsel for the National Association of Convenience Stores, said in a statement. While the MPC applauded the DoJ’s efforts to rein in Visa’s alleged control over the debit card industry. Kantor added that further competition is needed when it comes to credit card swipe fees “which currently face no competition at all.”
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Retail groups including the National Retail Federation and the Merchant Payments Coalition, which have long pushed for action curbing Visa and MasterCard, also lauded the case.
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The Merchants Payments Coalition welcomed the DOJ lawsuit on Tuesday, accusing Visa of having “relentlessly flouted the law to maintain a monopoly over setting fees for transactions made with cards issued under its brand.” MPC executive Doug Kantor said the lawsuit showed how “we desperately need competition over credit card swipe fees, which currently face no competition at all.”
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The Merchants Payments Coalition, a group of merchants, including retailers, convenience stores and supermarkets, said it welcomed the lawsuit. “This is further evidence that Visa has regularly blocked competition in the debit card market,” said Doug Kantor, an executive committee member of the coalition, and the general counsel for the National Association of Convenience Stores. “Visa has relentlessly flouted the law to maintain a monopoly over setting fees for transactions made with cards issued under its brand and for processing those transactions.”
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The DoJ reviewed a “tremendous amount” of documents in the Plaid case, according to Doug Kantor, general counsel for Arlington, Va.-based National Association of Convenience Stores (and MPC Executive Committee member), a frequent opponent of the payment networks on interchange and related payment card acceptance issues. “It’s very likely the material taught them some things about Visa’s actions in the debit market,” Kantor tells Digital Transactions News. “A lot of those would raise concerns for any antitrust lawyer.” Asked about specifics, Kantor says, “We know from a merchant’s point of view Visa has employed tricks and traps for any competitor” to capture transaction volume. “It is clear over time that Visa’s actions, even when they’re cloaked in things like security, are really about protecting market share rather than those other things.”
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