The U.S. District Court in Brooklyn, N.Y., certified a class action in the 1992 case filed by retailers against Visa U.S.A. and MasterCard International. The class of plaintiffs thus consisted of about 4 million merchants, the largest being Wal-Mart Stores Inc. (The case later settled in favor of the plaintiffs, putting an end to the card brands' honor-all-cards rules.)
A Retail Payment Systems survey revealed that 70 percent of merchants accepted debit cards. Cash was used in 35 percent of merchants' sales, credit cards accounted for 25 percent, checks 21 percent and debit only 8 percent. Merchants were deterred by the investment required to accept online (PIN) debit and put off by the cost per transaction of offline (signature) debit.
In an address at the Emerging Law of Cyberbanking and Electronic Commerce seminar in San Francisco, Bond Isaacson, Chief Executive Officer of Visa's e-Visa division, predicted 10 percent of all Visa volume would originate on the Web by 2003.
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