Retailers eye a new target in the ‘honor all cards’ battle
Retailers are taking a new angle in the fight against shouldering high swipe fees.
Companies including Target, Amazon and Home Depot are pushing for the right to reject some rewards credit cards, payment options that typically carry higher fees for merchants, according to the Minneapolis/St. Paul Business Journal, which cites the Wall Street Journal.
This is the latest move retailers are making in effort to end the credit-card networks' "honor all cards" rule, which requires companies that accept Visa or MasterCard to take all of their credit cards. If that rule ends and retailers can dictate which credit cards they will accept, those with the highest merchant fees — and most generous rewards — likely would be rejected, the report explained.
The news comes on the heels of a $6.2 billion settlement with MasterCard and Visa. Retailers across the country had sued the credit card companies, accusing them of fixing prices on card swipe fees to benefit banks. However, some retailers, including Target, may opt out of the settlement to continue their case in court, according to the Minneapolis/St. Paul Business Journal.
To read more, click here.
Companies including Target, Amazon and Home Depot are pushing for the right to reject some rewards credit cards, payment options that typically carry higher fees for merchants, according to the Minneapolis/St. Paul Business Journal, which cites the Wall Street Journal.
This is the latest move retailers are making in effort to end the credit-card networks' "honor all cards" rule, which requires companies that accept Visa or MasterCard to take all of their credit cards. If that rule ends and retailers can dictate which credit cards they will accept, those with the highest merchant fees — and most generous rewards — likely would be rejected, the report explained.
The news comes on the heels of a $6.2 billion settlement with MasterCard and Visa. Retailers across the country had sued the credit card companies, accusing them of fixing prices on card swipe fees to benefit banks. However, some retailers, including Target, may opt out of the settlement to continue their case in court, according to the Minneapolis/St. Paul Business Journal.
To read more, click here.