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Electronic Payments Practice

Constantine Cannon has unparalleled expertise and worldwide recognition in cases involving the payments industry.  Since the firm’s formation in 1994, we have represented clients concerning virtually every major antitrust development in the payments space.  

This includes litigating every major antitrust case involving Visa, Mastercard and American Express since the 1990s. The firm has represented clients with respect to government investigations, mergers and joint ventures in the industry.  

Our payments industry expertise spans the convergence of fintech and digital commerce and payments.  We are adept at helping large, diverse groups of clients band together in complex cases that require significant time, stamina and legal acumen to plan and win. 

For instance, we serve as counsel for the 7-Eleven Group, the largest of several groups of retailers challenging Visa’s and Mastercard’s Honor All Cards and default interchange rules in a long-running multidistrict litigation.  The 7-Eleven Group includes many of the largest merchants in the United States, including Amazon, Costco, Lowes, Starbucks, Gap, Amtrak, 7-Eleven among many others.

Complex Cases, Major Wins

For millions of retailers, our lawyers secured what was then the largest antitrust settlement in U.S. history in In Re Visa Check/MasterMoney Antitrust Litigation. The case was brought by Walmart and other large retailers on behalf of a certified class of four million retailers that had been forced to accept Visa/MasterCard signature debit transactions at supra-competitive prices. Our work resulted in a monetary settlement of $3.4 billion (then three times the previous largest award) and injunctive relief estimated by the Court at upwards of $87 billion. 

Constantine Cannon also secured what was then the third largest antitrust settlement for client Discover Financial Services, Inc. Discover had sued Visa and MasterCard for damages regarding Visa’s and Mastercard’s enforcement of rules that precluded their bank members from issuing Discover-branded cards. The case resulted in a settlement of $2.75 billion on the eve of trial.

For a group of more than 60 merchants, including both Walmart and Amazon, we successfully objected to the $7.25 billion settlement of the class claims against Visa and Mastercard regarding their Honor All Cards and default interchange rules, among other practices.  That settlement was vacated by the Court of Appeals for the Second Circuit. 

Versatile, Nimble, Experienced

Our payments work extends well beyond the trial and appellate courts. Constantine Cannon regularly represents industry participants, including merchants, fintechs and networks, before federal and state antitrust enforcers and regulators. 

We served as lead counsel for the Merchant Payments Coalition, a coalition of the major merchant trade associations, before the Federal Reserve in connection with regulations adopted per the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding debit card transactions and debit card interchange fees. And we have remained deeply involved in ongoing advocacy for enforcement of debit regulation before the Federal Reserve and the Federal Trade Commission.

Our firm also serves as outside general counsel for the Merchant Advisory Group (the MAG), a payments-focused trade association comprised of more than 150 U.S. merchants and which account for more than $4.8 trillion in annual sales at more than 580,000 locations across the United States and online.

A Leader in Antitrust Issues

Constantine Cannon’s lawyers are thought leaders on issues related to electronic payments. Because of our deep expertise and winning track record, we are routinely asked to speak and write on e-payments developments. Here is a sampling of our articles:

 

Contact us to learn more about our antitrust expertise in electronic payments matters and subscribe to our Payments Blog for news updates and insights.  

 

To keep up with our Antitrust Team, subscribe to our Antitrust Today blog, follow us on LinkedIn & Twitter and listen to our podcast, Antitrust Matters.

 

Payments News Update – September 6, 2024

Posted  09/6/24
Legal and Regulatory Developments SPOTLIGHT: Maryland Gets Tough on BNPL Payments Dive – September 3, 2024 Zip and Four Technologies revamped their buy now, pay later strategies in Maryland after the state cited them for operating without the correct licenses. In May, the state fined Four Technologies for offering BNPL services in violation of the state’s lending laws. And the Australian BNPL company Zip...

Payments News Update – August 30, 2024

Posted  08/30/24
Legal and Regulatory Developments SPOTLIGHT: CFPB Seeks Developers’ Comments on Apple’s Rules on Tap-to-Pay Access PYMNTS – August 28, 2024 The Consumer Financial Protection Bureau (CFPB) is seeking public comment on Apple’s recently announced rules governing how financial companies and app developers offer tap-to-pay functionality on its devices. “The CFPB is working to better understand further...

Payments News Update – August 23, 2024

Posted  08/23/24
Legal and Regulatory Developments SPOTLIGHT: BNPL Providers Won’t Face Penalties During Transition to New CFPB Rule Payments Dive – August 20, 2024 The Consumer Financial Protection Bureau on Friday announced that the agency will not fine buy now, pay later providers while they prepare to work under a new interpretive rule that treats them like credit card providers. The bureau “does not intend to seek...

Payments News Update – August 9, 2024

Posted  08/9/24
Legal and Regulatory Developments SPOTLIGHT: 6 Swipe Fee Plaintiffs 'Arbitrarily' Picked for 2025 Trial Law360 – August 7, 2024 (subscription required) Six retailers including department store giant Target will go to trial in 2025 on claims that Visa and Mastercard overcharged them, a Manhattan federal judge said Wednesday, explaining that he arbitrarily chose from among 60 plaintiffs in a long-running,...

Payments News Update – August 2, 2024

Posted  08/2/24
Legal and Regulatory Developments SPOTLIGHT: BNPL Regulation Debate Heats Up as Comment Period Closes PYMNTS – July 31, 2024 Klarna argues for a bespoke regulatory framework, while AARP supports the rule, emphasizing the need for consumer protections as buy now, pay later (BNPL) usage grows among older Americans. Time has expired for companies looking to comment on the Consumer Financial Protection...

Payments News Update – July 26, 2024

Posted  07/26/24
Legal and Regulatory Developments SPOTLIGHT: BNPL Firms Ask for 5 More Months to Prepare for CFPB Rules PYMNTS – July 17, 2024 The end of the month is speeding toward the buy now, pay later (BNPL) industry — and with it, new rules and regulations regarding consumer disputes and new operational burdens in the drive toward compliance. The Consumer Financial Protection Bureau’s (CFPB) rule classifying...

Payments News Update – July 12, 2024

Posted  07/12/24
Legal and Regulatory Developments SPOTLIGHT: 2 Cases in Visa, Mastercard MDL Ready for Trial, Judge Says Law360 – July 9, 2024 (subscription required) The New York federal judge handling multidistrict litigation over Visa and Mastercard merchant fees suggested on Monday separating from the MDL the lawsuits involving the Target and 7-Eleven plaintiffs, saying the cases are ready for trial and should be...

Payments News Update – July 5, 2024

Posted  07/5/24
Legal and Regulatory Developments SPOTLIGHT: Supreme Court Lets Complaint on Debit Fees Proceed Payments Dive – July 1, 2024 The Supreme Court ruled Monday that a lawsuit by a North Dakota merchants group challenging a debit card interchange rate set by the Federal Reserve can proceed. The case, filed in 2021, had been blocked previously because a lower court ruled, and an appellate court agreed, that the...

Payments News Update – June 28, 2024

Posted  06/28/24
Legal and Regulatory Developments SPOTLIGHT: Federal Judge Rejects $30 Billion Settlement Between Visa, Mastercard and Retailers CNN – June 25, 2024 A federal judge overseeing a $30 billion preliminary swipe-fees settlement between Mastercard, Visa and retailers formally rejected the deal Tuesday. The ruling likely means the credit card processors will have to make more concessions to resolve their...
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