Tuesday , September 26, 2023

Mastercard Denies Rate Bump Assertion And Other Digital Transactions News briefs from 9/5/23

  • Mastercard Inc. denies an assertion it intends to raise interchange rates in October following an Aug. 30th story in The Wall Street Journal about interchange rate adjustments expected from Mastercard and Visa Inc. in October and April. Mastercard said the article relied on a report from an advisory firm that is advocating for legislation that could limit U.S. credit card interchange rates. “Mastercard is not raising interchange rates in the U.S. this Fall and has no plans to do so,” the rebuttal states. “Mastercard is not raising network fees in the U.S. required for the processing of Mastercard transactions this fall,” it continues. The card network also said the authorization optimizer service fee is not related to interchange, but designed to reduce the likelihood that subscription and recurring payments will be declined. “Whether businesses are considering implementing a specific service or Congress is considering legislation, we believe these activities should only take place based on an accurate understanding of the facts and how our industry works,” the statement concluded.
  • The global volume of e-commerce transactions masked by network tokens will reach 400 billion in 2028, up from 140.3 billion this year, according to forecasts by Juniper Research.
  • The fraud prevention platform ThetaRay announced a $57-million funding round led by Portage. The company said it will use the funds to spur global growth.
  • Allegiant Air has launched its Allways Rewards Visa card, replacing a 7-year-old card program the airline had offered with Mastercard. Bank of America remains the issuer.
  • United Kingdom-based banking giant Barclays plc is considering the sale of an unspecified stake in its merchant-acquiring unit, Reuters reported. The unit’s value may be pegged at approximately $2.5 billion, the news service said.
  • The restaurant point-of-sale technology provider Toast announced chief operating officer Aman Narang is taking over as chief executive, replacing long-time CEO Chris Comparato. Both Narang and Comparato will continue to serve on Toast’s board.

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