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.
Despite being behind the likes of Europe and China, the US payments industry is now rapidly advancing, said Anish Kapoor, CEO of AccessPay told GTNews in an exclusive interview.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.
#PSD2FinishLine recently started trending on Twitter. As the country slowly grows in excitement throughout the month of November, with the C-word on ... read more