Overview
The recent settlement of a class-action lawsuit pitting merchants against card networks Mastercard and Visa is attention-getting, not least of all for the $30 billion price tag. Merchants have long been vocal about rising interchange costs and what they view as an inability to exercise control over them. The settlement provides some relief in this area, but in the view of Javelin Strategy & Research, it’s more a course correction than a wholesale reworking of the bank card economic model.
This report looks at the settlement, including a timeline of the litigation, what the details are, the degree to which merchants have improved their position, and how various entities in the merchant payments ecosystem—acquirers, card networks, service providers, vendors, and merchants themselves—should adjust their sails should the settlement receive court approval, as is expected.
Key questions discussed in this report:
- What does the settlement, if approved, mean for the various entities in the merchant payments ecosystem?
- What was the timeline of the litigation and how did the sides arrive at the settlement?
- What does the settlement mean for card payments overall?
Companies Mentioned:
American Express, Macy’s, Mastercard, Visa
Learn More About This Report & Javelin
Related content
Implementing Pay-By-Bank: A Guide for Merchants
Many merchants are exploring alternative ways to accept payments from customers and reduce the rising cost of accepting card payments, but is the U.S. banking infrastructure ready ...
2025 Small-Business Point-of-Sale System Scorecard
Merchants have become comfortable buying financial services and technology together, bringing banks and financial services providers into the software market to compete with the so...
The Evolution of Omnichannel Payment Strategies
Successful merchants are growing by meeting customers where they are, whether that’s in-store, online e-commerce, or on the go via their mobile devices. New technologies enable mer...
Make informed decisions in a digital financial world