This past weekend a major settlement was reached between two major card brands and their issuing banks, and several major retailers, to the tune of $6B. In addition, these same retailers will enjoy a reduction in swipe fees totaling another $1.2B over the next 8 months.
Perhaps even more interesting than the cost of the settlement, is one of the other outcomes–the fact that retailers will now be able to charge customers more if they (the customer) want to pay using a credit card. You may have seen this practice already, but in all likelihood it was in defiance of the card brands’ guidelines. Now however, retailers can do it all they want without fear of card brand reprisal.
Whether or not customers will go along with it is a different story.
Tom Noyes over at the blog “FinVentures” does an excellent job of running through the potential reactions by various groups (Petro, Grocery, Luxury Brands, etc.) as well as how all this might impact the card brands moving forward.
Read more at FinVentures