On the strength of more consumers using their credit cards, MasterCard reported quarterly earnings that were up 23 percent, beating Wall Street’s expectations.
Visa is the world’s largest processor of debit and credit-card payments and it rang up 10.5 percent more in the April-June quarter than a year ago, about $1.74 trillion worth of payments and cash transactions.
It’s official. There is an all-out legal war over interchange fees — those “swipe” fees that merchants pay banks based on rates and policies set by the giant credit card networks of Visa and MasterCard. The latest twist comes in the form of a new lawsuit filed by some of the biggest U.S. retailers.
Big Retail has come out in force against the pending $7.25 billion settlement between merchants and the credit-card network giants Visa and MasterCard over long-time allegations of price-fixing on so-called “swipe fees.”
U.S. consumers are doing better at reducing their credit card balances and paying on time, as the average total card debt per borrower is down to $4,878, according to TransUnion’s update for the first quarter of 2013.
Transactions processed over Visa’s network totaled $13.9 billion, an increase of 6 percent from a year earlier. The U.S. accounted for a 3 percent gain, while international transactions climbed 21 percent.
The rapidly-evolving mobile payments industry just took a big step with two huge brands, Visa and Samsung, announcing a partnership that may involve the smartphone maker’s highly-anticipated Galaxy S IV model set to debut next month.
For now, U.S. consumers don’t have to worry about the big retail chains adding a surcharge for credit card purchases, despite a settlement with Visa, MasterCard and the banks that allow them to do so.
It has nothing to do with the fiscal cliff or any reform legislation, but retailers can charge you a “checkout fee” starting Sunday – a fee equal to what they pay to accept the card – typically 1.5 percent to 3 percent of the entire purchase.
Teen pop sensation Justin Bieber will plug a new prepaid debit card, according to BillMyParents, a financial company that focuses on a trackable and reloadable MasterCard that promotes responsible teen spending habits.