National Retail Federation criticizes ‘meager and temporary’ relief
- The National Retail Federation objects to a settlement reached by Visa and Mastercard with merchants
- NRF argues that the settlement offers meager and temporary relief
- Visa and Mastercard would lower fees and cap charges for five years as part of the settlement
- The settlement is still subject to court approval
- NRF criticizes the settlement as a ‘backroom deal’ without input from major retailers
- The proposed rate reduction would save merchants $6 billion annually, compared to $100 billion in swipe fees collected by Visa and Mastercard
- The settlement follows a courtroom loss for the credit card company defendants
- The settlement pertains to all merchants who accepted Visa and Mastercard cards since December 2020
- NRF is part of a coalition pushing for the Credit Card Competition Act
- Sen. Dick Durbin is calling for testimony on the issue from the card companies’ CEOs
The National Retail Federation (NRF) has voiced its objection to a settlement reached by Visa and Mastercard with merchants over past overcharges. The NRF, representing thousands of U.S. retailers, argues that the proposed settlement falls short of providing the necessary remediation. As part of the settlement, Visa and Mastercard would lower fees and cap charges for a period of five years. However, the NRF contends that the financial relief offered is meager and temporary. The settlement is still subject to court approval. The NRF has criticized the settlement as a ‘backroom deal’ that was struck without input from major retailers and their associations. The proposed rate reduction would save merchants $6 billion annually, compared to the $100 billion in swipe fees collected by Visa and Mastercard last year. The NRF also questions the appropriateness of the settlement following a recent courtroom loss for the credit card company defendants. The settlement pertains to all merchants who accepted Visa and Mastercard cards since December 2020. In addition to objecting to the settlement, the NRF is part of a coalition pushing for the Credit Card Competition Act, which would require bank card issuers to offer competing card networks as alternatives to Visa and Mastercard. Sen. Dick Durbin is calling for testimony on the issue from the card companies’ CEOs.
Factuality Level: 8
Factuality Justification: The article provides a detailed account of the objections raised by the National Retail Federation regarding a settlement reached between merchants and the card networks Visa and Mastercard. It includes quotes from NRF representatives, information on the settlement terms, background on the legal battle, and the potential impact on merchants. The article presents facts and statements from involved parties without significant bias or sensationalism.
Noise Level: 8
Noise Justification: The article provides a detailed account of the litigation settlement between the National Retail Federation and the card networks Visa and Mastercard. It includes information on the objections raised by NRF, the proposed settlement terms, the reactions from major retailers, and the ongoing legislative efforts related to credit card competition. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on the dispute and the settlement terms without delving into broader implications or potential solutions beyond the current situation.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to a litigation settlement between the National Retail Federation (NRF) and the card networks Visa and Mastercard. It discusses the reduction of fees charged by bank card issuers and the networks for credit card transactions. The settlement could impact the financial markets by potentially affecting the revenue and profitability of Visa and Mastercard.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article focuses on a legal dispute and a settlement between the NRF and Visa/Mastercard. While it has financial relevance, there is no mention of an extreme event or its impact rating.
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