| Contacts |
| Jim Issokson MasterCard Worldwide 914-249-6286 |
Consumers to Pay More for Merchants’ Debit Card Benefits
Purchase, N.Y., June 22, 2010 -
MasterCard said today that it is disappointed that the Financial Regulatory Reform Conference Committee has chosen to shift debit card acceptance costs from retailers to consumers. This provision stands to benefit some of the largest retailers in the world and will harm not only consumers, but also community banks, credit unions, and government benefits administrators. Currently, merchants pay their fair share of debit acceptance; in the future, consumers will be responsible for bearing this cost.
“It’s a shame that the Conference Committee chose to protect big box merchants instead of consumers. Despite widespread opposition from consumers, credit unions, community banks, state government officials, prominent academics, and large numbers of Democratic and Republican Members of Congress, the Conference Committee has decided that consumers should pay for merchants’ debit card acceptance benefits,” said Noah Hanft, MasterCard's general counsel. “The government regulation of debit interchange was not debated and there were no congressional hearings. Unfortunately the Durbin Amendment will have a very serious adverse impact on consumer checking accounts, debit card programs, as well as the federal government’s and states’ ability to provide assistance on prepaid cards inexpensively and effectively,” Hanft continued.
“MasterCard will work with affected parties throughout the Federal Reserve’s rulemaking process to ensure that consumers, small financial institutions and other stakeholders are harmed as little as possible,” Hanft concluded.
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 22 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information, go to www.mastercard.com. Follow us on Twitter: @mastercardnews.
“It’s a shame that the Conference Committee chose to protect big box merchants instead of consumers. Despite widespread opposition from consumers, credit unions, community banks, state government officials, prominent academics, and large numbers of Democratic and Republican Members of Congress, the Conference Committee has decided that consumers should pay for merchants’ debit card acceptance benefits,” said Noah Hanft, MasterCard's general counsel. “The government regulation of debit interchange was not debated and there were no congressional hearings. Unfortunately the Durbin Amendment will have a very serious adverse impact on consumer checking accounts, debit card programs, as well as the federal government’s and states’ ability to provide assistance on prepaid cards inexpensively and effectively,” Hanft continued.
“MasterCard will work with affected parties throughout the Federal Reserve’s rulemaking process to ensure that consumers, small financial institutions and other stakeholders are harmed as little as possible,” Hanft concluded.
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 22 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information, go to www.mastercard.com. Follow us on Twitter: @mastercardnews.