Payment system never stops, and payment cards survive regardless.
Merchant card fees still a problem in USA
Credit card processing networks Visa and Mastercard – along with a handful of banks that once owned the networks – recently agreed to a $6.2 billion settlement in the ongoing case between the networks and more than 12 million individual merchants who accept Visa or Mastercard payment cards.
But this 13-year lawsuit is not the end of it:
- This agreement only covers 99% of the retailers, the top 1% of the merchants who make up 25% of the nation's commerce have withdrawn, whilst not afFecting this deal
- Many merchants are pushing for regulatory changes to the way Visa and Mastercard operate, particularly as interchange income is still rising. “The monetary settlement doesn’t solve the problem. Swipe fees cost retailers and their customers tens of billions of dollars a year and have been skyrocketing for nearly two decades,” said National Retail Federation Senior Vice President & General Counsel, Stephanie Martz. “Ending the practices that lead to these anti-competitive fees is the only way to give merchants and consumers full relief once and for all.”
UnionPay still world’s largest card scheme
RBR’s most recent report, Global Payment Cards Data and Forecasts to 2023 shows that UnionPay has over twice the number of cards as Visa and nearly three times that of MasterCard:
The report shows that domestic schemes are still declining in most markets, where they are either dual-badged with, or replaced by, international schemes. However, they have seen something of a rebirth in a number of large markets in recent years. For example, India’s RuPay’s important role in a financial inclusion campaign has seen its share of the country’s cards rise to 49% since its launch in 2012.
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