Electronic Payments Coalition (EPC) Executive Chairman Richard Hunt commented on the recent settlement agreement reached between Visa, Mastercard, and a class of merchants regarding card processing costs. The settlement involves more than 90 percent small business owners and follows a class-action lawsuit.
Hunt stated, “Both sides worked in good faith to reach this new, comprehensive agreement. It provides businesses of all sizes with meaningful and significant concessions that give more flexibility and choice in card acceptance, greater ability to pass along card processing costs, a more than 25 percent reduction on standard credit cards, and capped interchange rates across the board. This agreement now moves forward for judicial review.
“With this agreement, lobbyists for corporate mega-stores and a few politicians can end their misguided crusade – at both the federal and state levels – to undermine our safe, secure, and efficient payment systems through untested government mandates.”
Merchants have estimated that the concessions in the agreement will result in savings exceeding $200 billion.
The previous settlement attempt from March 2024 was opposed by Walmart. The company argued that small businesses had compromised the interests of large national merchants for relief they considered insignificant for those most affected by the litigation. That earlier proposal would have provided approximately $30 billion in relief as well as technical changes requested by small business owners.
Following Walmart’s objection, large retailers have advocated for legislative changes in over 20 states. These efforts are said to challenge federal preemption laws. Walmart has reportedly organized seminars at government conventions promoting these bills as grassroots movements; however, EPC claims these campaigns are led by former industry lobbyists and government affairs executives who have also published opinion pieces across several states. Additionally, a former staff member of Senator Dick Durbin (D-Ill.), who supports new federal credit card regulations, has participated in state hearings backing such measures.
A summary document describing these campaigns is available online.
EPC expressed its support for investing in technology improvements and establishing national data security standards as ways to strengthen payment systems.