Walmart slams card fee pact, again

Walmart and hundreds of other major retailers are formally opposing a proposed $30 billion settlement over credit card swipe fees. This legal battle matters to you because swipe fees are likely your highest operating cost after labor. The retailers argue that the current deal between Visa and Mastercard is a 'cynical' attempt to maintain a monopoly. They claim the promised fee reductions are too small and too temporary to provide any real relief for business owners. For most merchants, the proposed settlement would only lower interchange fees by a few basis points for a five-year period. Walmart argues this doesn't fix the underlying problem: the lack of competition in the card network market. If this settlement is thrown out, it could lead to much more aggressive regulation or a trial that forces deeper, permanent cuts to the fees you pay every time a customer swipes. This pushback signals that the retail industry is not willing to accept minor concessions. As a business operator, you should monitor this closely. A rejection of this deal could eventually lead to new rules that allow you to steer customers toward cheaper payment methods more easily or see a significant drop in your cost of acceptance.

Source: Payments Dive

← Return to the library· Submit a correction