Merchants Vs. Visa & MasterCard
It seems like Visa and MasterCard Inc. are having a tough time implementing their new EMV compliance requirements in the United States.
Not so long ago we had written a blog article regarding Walmart’s lawsuit against Visa. Seems like the courts didn’t take too long to make their decision and side with retailers.
Today, we woke up to the news that an appeals court has rejected the lawsuit deal between MasterCard Inc. and Visa Inc. and retailers because evidence pointed to some merchants not being adequately represented in the deal.
If you want to read the full news details regarding this case, read this recent article by The Wall Street Journal.
Why Are Retailers Suing Visa and MasterCard
Nonetheless, the lawsuit really stems from retailers feeling burdened by fees associated with installing new secure debit and credit card technology.
Many retailers want to continue the use of PIN numbers for customers who pay with a chip-enabled debit card.
On the other hand, Visa wants to require that customers still provide a signature during payment. This does not sit well with retailers because many feel that signatures are more expensive and less secure.
Merchants are Overburdened with Fees
As a merchant, you can probably relate with why other retailers are willing to sue MasterCard and Visa over their new regulations.
Innovation in technology is great for customers but sometimes can be burdensome for retailers.
Retailers are struggling to keep up. Merchants want to give customers the ability to use unconventional payment methods, such as using their phones and other means. Although technology makes paying convenient for customers, the fees associated with installation and processing can become quite expensive for some retailers.
Visa and MasterCard Have Tried Compromising
Visa and MasterCard have been making efforts to reduce the burden on retailers. This includes speeding up the certification process, limiting costs associated with counterfeit transactions, and creating new technology to meet the other needs.
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