Page 8 - gs260802

NewsBriefs

This article contains summaries of news stories recently posted under India rethinks the economics of free UPI payments
Breaking Industry News on our homepage. For links to these and other
full news stories, please visit www.greensheet.com/breakingnews.php. India is moving toward allowing merchant fees on some
Unified Payments Interface transactions through a pro-
posed amendment to its Payment and Settlement Systems
Act. UPI and RuPay debit transactions have largely operat-
ed under a zero merchant discount rate policy since 2020.

Officials are considering fees targeting larger merchants
or transactions, while person-to-person and ordinary con-
sumer payments would remain free.
Same-day payments drive ACH growth
One proposal would impose fees of 0.3 percent to 0.5 per-
Nacha reported strong ACH network growth in the sec- cent on qualifying transactions above 2,000 rupees. The
ond quarter of 2026, with 9.3 billion payments valued at debate reflects the challenge of funding UPI's infrastruc-
$25.9 trillion, up 6.2 percent and 11.1 percent, respectively, ture, security and continued innovation. India's experi-
year over year. ence could also provide lessons for other markets devel-
oping real-time account-to-account payment systems.
Same-day ACH volume jumped 29.5 percent to 435.7 mil-
lion payments valued at $1.3 trillion. B2B payments rose New Jersey businesses warned over surcharges
9.9 percent to 2.2 billion, while consumer internet pay-
ments exceeded 3 billion for the first time. The New Jersey attorney general's office warned business-
es that credit card surcharges must be clearly disclosed
Person-to-person payments increased 21 percent to 136.6 before customers incur charges, or merchants could face
million, with value rising 35.6 percent. During the first fines. Under the state's Consumer Fraud Act, surcharges
half, the ACH network processed 18.2 billion payments cannot exceed merchants' card-processing costs and must
worth nearly $50 trillion. be disclosed at appropriate points, including restaurant
menus, websites, apps, kiosks and telephone transactions.
Small business sales post modest growth in July
Following more than a dozen consumer complaints, the
Fiserv reported modest small business sales growth in state issued warning letters to 14 businesses over alleged
July, with sales rising 1.6 percent year over year as higher disclosure failures. Each violation can carry a $10,000 pen-
average tickets offset declining foot traffic. Average tickets alty for a first offense and $20,000 for subsequent viola-
increased 3.2 percent, while traffic fell 1.6 percent, mark- tions.
ing its ninth consecutive monthly year-over-year decline.
Restaurant sales decreased 0.8 percent, including a 3.4 per- Officials also advised consumers to watch for improperly
cent decline at limited-service restaurants. disclosed fees and misleading "cash discount" programs
that add charges to posted prices rather than offering gen-
Retail sales rose 1.9 percent, led by gains in sporting goods uine discounts.
and hobbies, health and personal care, and clothing and
accessories. Essential spending increased 2 percent, com- Financial strain widens divide
pared with 1.3 percent for discretionary purchases. Fiserv among U.S. credit card customers
said consumers remain engaged but increasingly selective.
JD Power surveyed 40,386 card customers between June
Trump promotes Credit Card Competition Act 2025 and May 2026 and found financial health among U.S.

President Trump renewed his support for the Credit Card credit card customers deteriorating even as card spending
Competition Act, praising Sen. Roger Marshall, R-Kan., increases. Its 2026 U.S. Credit Card Satisfaction Study clas-
sified 60 percent of customers as financially unhealthy, up
for working to curb what Trump called excessive swipe
fees. Marshall and Sen. Dick Durbin, D-Ill., are seeking a from 56 percent a year ago, while average monthly credit
card spending rose $109 to $1,167.
Senate vote on the bipartisan measure, which would re-
quire large card-issuing banks to enable transactions over Premium and airline co-branded cards earned higher sat-
at least one network unaffiliated with Visa or Mastercard.
isfaction scores, while cards without rewards or annual
Similar House legislation has also been introduced. The fees lagged. Fifty-two percent of customers carry balanc-
Merchants Payments Coalition welcomed Trump's en- es, with 30 percent of those owing at least $2,500. Fraud
incidence increased to 13 percent, while proactive issuer
dorsement, arguing increased network competition could
reduce interchange costs. The group estimated the legisla- outreach declined. American Express ranked highest in is-

suer satisfaction.
tion could save merchants and consumers $17 billion an-
nually.

8 8