An American Express and a Visa credit cards are seen on a computer keyboard in this picture illustration taken September 6, 2017. REUTERS/Philippe Wojazer/Illustration
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Every time a credit or debit card is swiped or a website's "buy" button clicked, a series of events moves money from consumer to merchant. The process costs retailers almost $90 billion in fees each year – and banks, payment networks (such as Visa Inc. and Mastercard Inc). and payment processors (such as First Data Corp. and Worldpay Inc). The U.S. has what's known as a four-party system – the consumer, the consumer's bank, the merchant and the merchant's bank. The networks, Visa and Mastercard, sit between the consumer's bank and the merchant's bank and send signals back and forth that allow money to securely pass between the two.In a typical transaction, proceeds are shared by the two banks and either Visa or Mastercard.Who pays the fee?The merchant.A decade-old lawsuit on behalf of 12 million merchants who say banks and card networks improperly fixed swipe fees is close to producing a multibillion-dollar settlement.
FOLLOW THIS ARTICLE