Retailer opposition to the US$7.25bn class action settlement reached with Visa and MasterCard
earlier this month over credit card interchange fees
has grown after Walmart joined rival retailer Target in rejecting the settlement.
The settlement was supposed to finally put an end to a legal dispute over interchange fees that has been dragging on for seven years in the US. Retailers are to share the US$7.25bn award and Visa and MasterCard have said they will reform their rules and business practices.
The promised reform obviously isn’t enough for Walmart, however, which said it was “disappointed” with the deal in a prepared statement, and that it “would not structurally change the broken market or prohibit credit card networks from continually increasing hidden swipe fees, which already cost consumers tens of billions of dollars each year”.
As the largest retailer in the US, the addition of Walmart to the other retailers already voicing concern about the deal is likely to add weight and strengthen opposition. Target had already said the settlement would merely “perpetuate a broken system” and others fear it could restrict innovation in the payments field, particularly surrounding mobile payments and loyalty schemes. Merchants would have to waive their rights to any future comeback or recompense if the settlement is agreed.
On day one of SIBOS, panellists unanimously agreed that doing nothing to modernise payments was no longer safe bet for transaction banking.
On day one of Sibos 2017, Stefan Dab, The Boston Consulting Group led a conversation examining the future of correspondent banking, and specifically the pain points corporate treasurers face in their cross-border payments operations and where technology can be developed to alleviate these.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.
HSBC arguing that mid-market businesses are missing out on huge exporting opportunities, 3D printing being predicted to cut global trade by 23% in 2060 and the blockchain community launching a voluntary transparency project all hit the latest headlines in the world of treasury this week.