Merchants Are Searching A Cheaper Way To Accept Payments, Bitcoin Looks To Shine In The Crypto Spotlight
Merchants from all around the world are searching new ways to accept payments without having to pay high commissions. Mastercard, Visa and other US banks agreed on a settlement of $6.2 billion dollars. Merchants filed a lawsuit due to the high fees that hey need to pay when they accept card payments.
The lawsuit represents 12 million retailers that mention card issues such as Citigroup, Bank of America and other companies. This dispute has several years old. It began back in 2005 after merchants accused credit card companies of violating antitrust laws. They were inflating the fees of the interchange every time retailers accepted payments.
In general, every time a payment is processed with credit cards, the cost is 2% of the transaction, and with debit cards the cost is 24 cents. The settlement has already been reached, but it needs to be approved by the court.
Kelly Mahon Tullier, General Counsel for Visa, commented:
“After years of thoughtful negotiation, we are pleased to be able to reach this agreement and move forward in our partnership with merchants to provide consumers convenient, reliable, secure ways to pay.”
However, Stephanie Martz, general counsel for the National Retail Federation trade group, said that this monetary settlement does not solve the issue behind. Merchants and consumers should be able to pay smaller fees for these transactions.
Clearly, cryptocurrencies could be a good solution in the long term to this problem. Virtual currencies offer fast payments and reduced fees compared to Visa, Mastercard and other providers.
This is in line with what some experts in the field believe.
Visa, Mastercard, and a few U.S. banks just agreed to pay $6.2 billion to merchants over the fees they must pay when accepting credit card payments.
Merchants desperately want a less expensive way to accept payments.
That's what crypto is for. pic.twitter.com/WFcKQmMxZX
— Kevin Rooke (@kerooke) September 18, 2018
However, the community is not sure if the companies will pay for the settlement or they would just increase fees and costs in other services they provide.
At the moment, sending and receiving payments in Bitcoin or other virtual currency is cheaper than doing so with credit or debit cards. Nonetheless, Bitcoin and Litecoin are working in different scaling solutions that would help reduce transaction times and fees almost to zero.