December 03, 2003 -- Wal-Mart's decision not to accept MasterCard signature debit cards confirms what was always the biggest threat of the merchant lawsuit — that it would take choice about how to pay

With this decision, Wal-Mart is putting its hand into its customers' wallets, and telling them which form of payment they must use. The more than 50 million Americans who hold MasterCard signature debit cards and use them because they receive rewards from their bank, or perhaps because they are uncomfortable entering their PIN into a terminal in a public place, now will have to use a credit card, if they have one, checks or cash.

The lifeblood of a free commercial system is choice — especially consumer choice. It is surprising in today's environment for any merchant to make a conscious decision that will result in dissatisfied customers and lost sales. Wal-Mart has been a valued customer and we respect their need to run their business as they see fit. We regret that we haven't been able to reach an agreement with them, but we must manage the MasterCard system in a way that balances the needs of all participants in the system — the financial institutions that issue cards, merchants, and consumers. In the long run, that will maintain the strength of America.s highly competitive payment system, which affords US consumers the greatest choice of payment options in the world.