Bloomberg Law: Visa, Mastercard Swipe Fee Deal Fails to Stem More Litigation
The proposed settlement is weak for merchants, given that it’s expected to save them $30 billion over five years, while US businesses paid more than $170 billion in swipe fees last year alone, said Doug Kantor, member of the executive committee of the Merchants Payments Coalition. The coalition is a Washington, D.C.,-based group of retailers advocating for competition in the payments market. Visa and Mastercard will continue to set prices for swipe fees charged to merchants each time a customer makes a purchase, and there’s nothing standing in the way of the companies raising them again after five years, Kantor said. “It’s very small and very temporary relief and then back to business as usual,” Kantor said. “The plaintiffs want a market that actually works and puts normal competitive pressure on fees.”
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NerdWallet: How the Visa-Mastercard Swipe Fee Settlement Affects Cardholders
The Merchant Payments Coalition, a CCCA proponent, counters that a temporary fee reduction leaves consumers and businesses hanging once the five-year period is over. “A few years of very small relief followed by business as usual is not a good outcome from 20 years of litigation,” said a statement from Christopher Jones, a member of the merchant coalition's executive committee and the National Grocers Association's senior vice president of government relations and counsel. “The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition. Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again.”
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Supermarket News: Visa, Mastercard agree to $30 billion settlement over credit and debit card swipe fees
The settlement “would provide very small relief and does not end the need for Congress to pass legislation,” the Merchants Payments Coalition (MPC) said in a statement following the announced agreement. “This settlement is a bad deal for merchants,” MPC Executive Committee member and National Grocers Association Senior Vice President of Government Relations and Counsel Christopher Jones said. “A few years of very small relief followed by business as usual is not a good outcome from 20 years of litigation. The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition. Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again. Congress needs to act so that we will have real reform that will benefit merchants and their customers.”
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Digital Transactions: Buying Groups Might—or Might Not—Give Merchants More Negotiating Power with the Card Networks
The Merchants Payments Coalition, a group representing retailers, supermarkets, convenience stores, gas stations, online merchants, and others in card-related matters, issued a statement saying the proposed settlement would provide “very small relief” and “does not end the need for Congress to pass legislation.”
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NACS Daily: Swipe Fee Settlement a Bad Deal
“Unfortunately, this settlement does not look much better than the one we successfully fought in 2012,” said NACS General Counsel Doug Kantor. “There are some additional provisions, but our initial review shows them to be limited in time and efficacy. We expect most merchant groups will see this the same way and that there will be major efforts to urge the court to reject the settlement.” Other retail-focused associations shared Kantor’s message. “This settlement is a bad deal for merchants,” said National Grocers Association Senior Vice President of Government Relations and Counsel Christopher Jones. “A few years of very small relief followed by business as usual is not a good outcome from 20 years of litigation. The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition. Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again. Congress needs to act so that we will have real reform that will benefit merchants and their customers.” Jones and Kantor both serve as executive committee members of the Merchants Payments Coalition, a group founded 20 years ago that represents retailers, supermarkets, convenience stores, gasoline stations, online merchants and others fighting for a more competitive and transparent card system that is fair to consumers and merchants.
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Wall Street Journal: Credit-Card Settlement Could Make Things Interesting at the Checkout Counter
Still, some retailers may keep battling for more changes. A statement by the Merchants Payments Coalition, an industry group, said the settlement provides “‘very small relief’ and does not end the need for Congress to pass legislation.”
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Politico Influence: Big Swipe Fee News
“This settlement is a bad deal for merchants,” argued Christopher Jones, a lobbyist for the National Grocers Association and a leader at the Merchants Payments Coalition. In a statement, Jones maintained that the settlement would provide “a few years of very small relief followed by business as usual,” arguing that “Congress needs to act so that we will have real reform that will benefit merchants and their customers.”
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Mass Market Retailers: Merchants group criticizes proposed ‘swipe’ fee settlement
“A few years of very small relief followed by business as usual is not a good outcome from 20 years of litigation,” Christopher Jones, an MPC executive committee member and senior vice president of government relations at the National Grocers Association, said in a statement. Added Jones, “The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition. Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again. Congress needs to act so that we will have real reform that will benefit merchants and their customers.”
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New York Times: Visa and Mastercard Agree to Cap Their Swipe Fees in Settlement
But not all merchants, particularly smaller ones, are as optimistic about the proposed changes. Temporary fee reductions fall short of what’s needed and underscore why Congress needs to pass legislation to promote a more competitive marketplace, said the Merchants Payments Coalition, a trade group representing retailers, supermarkets, convenience stores, gas stations and online merchants. “The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition,” said Christopher Jones, a member of the coalition’s executive committee and senior vice president of government relations at the National Grocers Association. “Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again.”
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CSP Daily News: Visa, Mastercard Agree to $30 Billion Settlement Over Credit and Debit Card Swipe Fees
The settlement “would provide very small relief and does not end the need for Congress to pass legislation,” the Merchants Payments Coalition (MPC) said in a statement following the announced agreement. “This settlement is a bad deal for merchants,” MPC Executive Committee member and National Grocers Association Senior Vice President of Government Relations and Counsel Christopher Jones said. “A few years of very small relief followed by business as usual is not a good outcome from 20 years of litigation. The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition. Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again. Congress needs to act so that we will have real reform that will benefit merchants and their customers.”
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