Department of Justice signs agreement with Visa, MasterCard Antimonolopios

Department of Justice signs agreement with Visa, MasterCard Antimonolopios


Last week, the Department of Justice of the United States announced it had reached a settlement with visa and MasterCard in virtue of which the two credit card Giants decided to waive certain anti-competitive practices. By virtue of the agreement, visa and MasterCard already not restricted to dealers offer discount incentives to customers who pay with credit or debit cards no-frills, come with lower processing fees.

The Department of Justice, together with seven attorneys generals, State also filed a civil lawsuit antitrust against American Express, refused to enter into agreement on its restrictions against comerciantes.El discount costume and tracking proposed settlement an investigation of two years of the restrictions imposed on traders wishing to offer discount incentives for consumers who pay with alternative forms of payment credit card companies.

In the heart of the battle are Exchange or "touch" the so-called credit card rates.These are fees merchants pay card companies to cover the cost of transaction crédito.cada time a consumer pays with a credit card credit card processing, merchants pay exchange rates ranging from 1 per cent to as high as 5 percent of your total purchase. The fees are divided between the issuing bank and credit card company credit card.

The punctuality rates are one of the main sources of income; credit card companies last year visa, MasterCard, American Express and their banks of affiliated to collect 35 million dollars in interchange fee alone.Exchange rates have been rising, and merchants have complained that officials raise the cost of goods and are particularly unfair to those who usually pay with cash.

Until now, merchants have been prohibited incentives for customers who use methods of payment such as cheques or cash without processing fees or lower rate elaboration. credit cards now, the new agreement in accordance with visa and MasterCard, this will change. Along with offering discounts and rebates, traders can also promote certain credit card and inform customers about the costs to use a specific card.

"We want to put money into the pockets of consumers", Attorney general Eric Holder said in a statement."By removing anti-competitive business credit card rules, succeed."
The solution proposed by Visa and MasterCard still must be approved by the United States in New York District Court, and it is not clear exactly how the new regulations would play.In theory, however, restrictions are lifted discount transactions for certain methods of payment, shops, restaurants, petrol stations and other companies in the future will be able to offer a discount, say 5 percent for persons who pay cash instead of plástico.O, consumers can offer a lower percentage of discount if you pay with credit cards charge a lower unpunctuality fee.

American Express has meanwhile announced that does not intend to resolve.Rates of Exchange on American Express cards are among the highest in the industry, but Amex claims that it has a unique business that benefits merchants both as Amex.Amex swipe model rates are higher, the company reasons, because Amex brand is targeted at rich consumers, overlook, a highly desirable to Express also claims that visa comerciantes.American consumer segment and MasterCard dominate the market, such as ten times emit cards as no Amex and are accepted by much more than the comerciantes.Para allow these companies discourage customers use American Express, according to a spokesman for Amex, visa and AmsterCard would give an unfair competitive advantage.

Amex clamping means that approximately six million that both accept Visa, MasterCard and American Express merchants will have to await the outcome of the stick to take advantage of discounts of lifting the merchants that accept only Visa and MasterCard restrictions, however, will be able to take immediate action on the new rules.

Remains to be seen the aggressive traders used discounts to direct the payment options, or if consumers are to responder.Y if consumers, in fact, more often pay with cash, could introduce new issues for traders: greater congestion on checkout, for example, lines, or the fact that consumers who pay in cash spend less.