The Australian Competition and Consumer Commission (ACCC) has commenced litigation in federal courts against Mastercard Asia Pacific and Mastercard Australia. allegations of anti-competitive conduct Significantly reduced competition in the supply of debit card acceptance services. From the report: Consumer watchdog claims that between November 2017 and at least November 2020, Mastercard had “significant levels of power” in the market for supplying credit card authorization services under the RBA’s least cost routing initiative . The Least Cost Routing Initiative aimed to increase competition for supply, with the goal of allowing merchants to choose which debit card network (either Mastercard, Visa, or Eftpos) will process contactless dual-network debit card payments. Reduce the payment costs associated with processing debit card payments for businesses while providing debit card authorization services.
For dual-network debit card payments, the fee the merchant pays may vary depending on the debit card network used to process the transaction. ACCC claims that in response to its least cost routing initiative, Mastercard offers lower exchange rates when it agrees to process credit card payments by contracting with more than 20 major retailers, including supermarkets, fast food chains and clothing retailers. . Mastercard-Eftpos debit card transactions were made via the Mastercard network and not the Eftpos network, although Eftpos was often the lowest cost provider.
Australian Watchdog sues MasterCard for abuse of card payment market dominance
Source link Australian Watchdog sues MasterCard for abuse of card payment market dominance