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Table of Contents

Lead Story

A call to Washington

News

Industry Update

ETA goal remains growing ISOs

TSYS, Central Payment form joint venture

Durbin urges merchants to reject proposed settlement

Mobile payments in the spotlight

ThreatMetrix warns of new malware

Features

GS Advisory Board:
New times, new strategies: What are you doing? - Part 3

Hope begins with one

Selling Prepaid

Prepaid in brief

Good and bad in Green Dot reforecast

Bankers oppose CFPB remittance rule

Views

What's still in your wallet?

Patti Murphy
ProScribes Inc.

Education

Street SmartsSM:
Stocking your MLS toolbox

Jeff Fortney
Clearent LLC

The long tail of the Durbin Amendment

Marc Abbey, Chris Sanson and Casey Merolla
First Annapolis Consulting

Micro attacks: Fraud of the future

Nicholas Cucci
Network Merchants Inc.

Countdown toTIN deadline: Are you ready?

Jacob Young
SecurityMetrics

Pay-at-the-table systems pay for themselves

Rick Berry
ABC Mobile Pay Inc.

Company Profile

Royal Merchant Holdings LLC

New Products

An elegant POS terminal

PAR EverServ 7000
ParTech Inc.

Safe checkout for online merchants

LeapLock Secure Checkout
PayLeap

Inspiration

Pause before you post

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

August 27, 2012  •  Issue 12:08:02

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Durbin urges merchants to reject proposed settlement

Sen. Richard Durbin, D-Ill., denounced a proposed settlement of claims that the interchange fees charged by MasterCard Worldwide, Visa Inc. and a number of issuing banks are unfair and violate provisions of the Sherman Antitrust Act. Durbin authored an amendment to the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act that gave the Federal Reserve Board authority to cap debit interchange fees.

The more than $7 billion settlement proposal agreement was divulged in July 2012 by lawyers appointed by the Brooklyn Federal District Court to represent the nearly 7 million merchants in the class. If Federal Court Judge John Gleeson accepts the settlement, which merchant lawyers said will be submitted for the court's preliminary approval by Oct. 19, it would be the largest settlement in Sherman Antitrust history.

Nonetheless, some of the largest retailers and retail organizations in the country, organizations such as Wal-Mart Stores Inc. and The National Association of Convenience Stores, said they intend to opt out of the settlement.

Secret negotiations

In remarks published in the Congressional Record Aug. 2, 2012, to commemorate the two-year anniversary of the Dodd-Frank Act, Durbin said the interchange fee settlement was negotiated in secret by "attorneys representing a small number of merchants."

The senator urged merchants to reject the proposed settlement and stated it still allows Visa and MasterCard to unfairly set interchange fees and unwisely grants the card companies immunity from all interchange fee antitrust claims past and future. He also said proposed changes allowing merchants to surcharge and collectively negotiate interchange rates with card companies "will be ineffective in reining in Visa and MasterCard's unreasonable fees."

The senator said merchants should reject the settlement because it "gives Visa and MasterCard free rein to carry on their anti-competitive swipe fee system with no real constraints and no legal accountability to the millions of American businesses that are forced to pay their fees."

For additional news stories, please visit www.greensheet.com and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services