The Green Sheet Online Edition
September 14, 2026 • 26:09:01
News Briefs
Time to dust off your gift-card sales pitch
Gift cards remain a preferred holiday purchase and offer merchants an opportunity to capture sales well before peak shopping season, according to a 2026 report from Bank of America and The Strawhecker Group. The report, based on a February survey of 1,002 U.S. consumers about their 2025 purchases, found 89 percent bought gift cards for year-end holidays. Birthdays followed at 83 percent and special occasions at 67 percent.
Nearly three-quarters of holiday gift buyers, 73 percent, preferred gift cards over merchandise, while 93 percent said the cards give recipients greater freedom and flexibility. Among recipients, 96 percent rated gift cards as equal to or better than traditional gifts. Redemptions also came quickly. By February 2026, 87 percent of recipients had used at least half of the holiday gift cards they received. Forty-three percent had used all of them.
Researchers noted recipients often spend beyond the card's value and return to merchants both in-store and online, making gift cards a tool for generating near-term revenue and encouraging repeat business.
PayPal swats away anti-trust challenge
PayPal won dismissal of an antitrust lawsuit challenging provisions in its merchant agreements that prevent merchants from surcharging PayPal transactions or steering customers toward lower-cost payment methods. Judge Jeffrey White of U.S. District Court for the Northern District of California granted PayPal's motion to dismiss on Aug. 12, finding the consumer plaintiffs failed to establish antitrust standing under the Sherman Antitrust Act.
The case, Sabol v. PayPal Holdings, Inc., alleged PayPal's rules reduced pressure on the company to lower merchant fees. Plaintiffs argued merchants consequently passed higher payment acceptance costs along to consumers through higher prices. White found the alleged connection between PayPal's rules, merchant costs and consumer prices too indirect and speculative. He noted that numerous other factors affect retail prices.
The lawsuit was originally filed in 2023 and dismissed in 2024. Plaintiffs were allowed to amend their complaint but subsequently failed to provide sufficient facts demonstrating they were directly harmed by PayPal's merchant fees.
North Carolina merchants cry foul over 'junk fees'
A North Carolina business is seeking class action status for a lawsuit accusing Elavon and ISO Paychex Inc. of assessing unauthorized "junk fees" totaling nearly $100 a month. Dr. Robert D. Freedland, DDS, P.A., alleges recurring PCI compliance, non-PCI, Safe-T and other fees were not disclosed in his original merchant agreement. The lawsuit, filed in Superior Court for Durham County, alleges breach of contract and violations of North Carolina's Unfair and Deceptive Trade Practices Act.
Payments attorney James Huber expressed skepticism about the case, while lawyers at Venable said its significance may lie in applying the consumer-oriented "junk fee" concept to merchant processing disputes. Venable noted merchants have challenged undisclosed or mischaracterized processor fees for decades, generally through breach of contract or unfair trade practices claims. The North Carolina case reframes such charges through pricing transparency principles. The firm advised processors and ISOs to review their fee practices to ensure charges are clearly authorized and properly communicated to merchants.
Pay-by-bank gets real
Sionic launched its instant bank payment and fraud detection services in Microsoft Marketplace, enabling merchants to download applications and accept payments from consumers using mobile wallets linked to checking accounts. The Atlanta-based fintech's closed-loop pay-by-bank system uses RTP and FedNow to move funds between consumer and merchant accounts within seconds. Sionic CEO Ron Herman said small businesses will pay 1 percent of the transaction amount; businesses with larger tickets will pay a flat $25 fee.
Sionic supplements the instant-payment rails with fraud protection and dispute resolution using Microsoft Foundry. AI agents can negotiate refund disputes between buyers and sellers, involving financial institutions only when escalation is necessary.
The service also allows merchants to tailor rewards to individual consumers. That could help address barriers to pay-by-bank adoption identified by Federal Reserve research, which found consumers accustomed to card rewards and fraud protections may expect similar benefits before switching payment methods. Sionic is working with prospective adopters in grocery retailing and auto dealerships.
Walmart ends its long holdout on tap-to-pay
Walmart is adding tap-to-pay acceptance at selected Walmart and Sam's Club locations, ending its status as one of the largest U.S. retailers to hold out against contactless checkout. The rollout began Aug. 24 and is expected to reach all U.S. Walmart and Sam's Club stores by the end of 2026, with fuel stations following by mid-2027. Customers will be able to tap eligible contactless cards, smartphones and smartwatches, including devices using Apple Pay and Google Pay.
Walmart spent years emphasizing proprietary payment tools, including Walmart Pay, which lets customers scan a QR code through the Walmart app. Those options will remain available alongside contactless payments and traditional methods.
The shift reflects the growing expectation that merchants accept the payment methods customers routinely use elsewhere. Contactless cards and mobile wallets have become commonplace across retail, restaurants, grocery stores and transit. Walmart's scale also gives the decision broader payments-industry significance. Acceptance choices made by national retailers can influence customer expectations and, in turn, the payment capabilities smaller merchants seek.
Fiserv joint venture launches MoneyPass Group
MoneyPass Group began operating Aug. 5, 2026 as an independent ATM network and cash infrastructure company formed through a joint venture between Fiserv Inc. and private equity firm Bridgeport Partners. The company combines Fiserv's MoneyPass Network, ATM Managed Services and Cash Intelligence businesses.
It operates one of the nation's largest surcharge-free ATM networks, with more than 37,000 locations serving approximately 160 million cardholders. Clients include financial institutions, fintechs, ATM operators and merchants.
Bridgeport holds a 51 percent controlling stake in MoneyPass Group; Fiserv retains 49 percent. Erik Wichita, a 30-year Fiserv veteran, serves as CEO, and Bridgeport executive partner Don Layden is executive chairman.
The venture is part of Fiserv's One Fiserv strategy. Fiserv said it will continue supporting MoneyPass Group through technology expertise, industry knowledge, client relationships and referrals. The partners also entered long-term commercial agreements to maintain service continuity and provide their clients access to complementary services.
Fiserv is also expanding Clover internationally, with recent launches in Australia and Brazil and plans to bring the platform to Japan. 
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