Monday, June 19, 2017
Among the terms agreed upon, the card brands will:
(Basic information on Visa's current U.S. surcharging rules, along with links to more detailed information can be found here: usa.visa.com/support/small-business/regulations-fees.html#2)
"We believe that an amicable resolution is in the best interests of our stakeholders," Mastercard stated. "Although we have strong defenses to the claims, a settlement avoids the continued costs and uncertainties that are inherent in litigation."
Visa expressed similar sentiments, stating, "Visa has settled without admission of any wrongdoing and remains of the view that it had strong defenses to all of the allegations advanced in the class proceedings."
Both companies emphasized protections would be in place for consumers. "The agreement to revise Visa's no-surcharge rule and allow merchants to impose checkout fees on credit card transactions includes consumer protections, such as a maximum surcharge limit and requirements for merchants to disclose their surcharging practices," Visa said.
In addition to mentioning a surcharge cap and requirement that merchants disclose surcharging practices, Mastercard stated there would also be "provisions to ensure a level playing field with cardholders of competing payment networks."
Revised rules are expected to come into effect 18 months after court approval of the settlement.
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