In a press release issued on MasterCard Worldwide's website, they suggest that consumers will get the short end of the stick in Vermont should they indeed pass the Interchange bill approved by the Vermont Senate. (see related stories below for more on the Bill) Purchase, NY, - MasterCard said it is pleased that the Vermont Legislature recognized the value of accepting electronic payments and the benefits that interchange provides both merchants and consumers. They also maintained the important consumer protection provided under the Honor All Cards rule, which guarantees consumers the card they choose to use will be accepted by any merchant displaying the MasterCard logo.
However, legislation approved by the Vermont Legislature allows merchants to set a $10 minimum for the use of all electronic payment cards, including credit, debit and prepaid cards. The unintended consequence of this bill would require Vermonters and visitors to the state to spend more than they might have intended if they choose to use a payment card. The legislation would restrict consumer choice, and allow merchants to circumvent MasterCard rules that prevent consumers from being penalized for preferring to use an electronic payment card.
The new Vermont law, in addition to MasterCard rules, provides merchants with the right to offer a discount for cash and all forms of payment, including competing card brands. Using discounts to steer customers to another form of payment is preferable to minimums, as it would not lead consumers to spend more than originally intended.
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 22 billion transactions each year, and provides industry-leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information, go to www.mastercard.com. Follow us on Twitter: @mastercardnews.
However, legislation approved by the Vermont Legislature allows merchants to set a $10 minimum for the use of all electronic payment cards, including credit, debit and prepaid cards. The unintended consequence of this bill would require Vermonters and visitors to the state to spend more than they might have intended if they choose to use a payment card. The legislation would restrict consumer choice, and allow merchants to circumvent MasterCard rules that prevent consumers from being penalized for preferring to use an electronic payment card.
The new Vermont law, in addition to MasterCard rules, provides merchants with the right to offer a discount for cash and all forms of payment, including competing card brands. Using discounts to steer customers to another form of payment is preferable to minimums, as it would not lead consumers to spend more than originally intended.
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 22 billion transactions each year, and provides industry-leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information, go to www.mastercard.com. Follow us on Twitter: @mastercardnews.
Apr 05, 2010
"Today is a significant victory for Vermont's small businesses and their customers, and we applaud the Vermont Senate for standing up to the big banks and credit card companies to get this done," Jennifer Hatcher, group vice president ...
15 hours ago
WASHINGTON--(BUSINESS WIRE)--The National Retail Federation today urged Vermont Governor Jim Douglas to sign legislation passed this week that would make it easier for merchants to give a discount to customers who pay by cash, ...
Feb 24, 2010
Peter Welch, D-Vermont, who is pushing for congressional action on the issue. Video: Defending swipe fees. Video: Taking swipe at swipe fees . Related articles by Zemanta. A PIN for All Reasons - GreenSheet (pindebit.blogspot.com) ...
