Contact

Click here for a confidential contact or call:

1-212-350-2774

Electronic Payments Practice

The firm has achieved massive successes in the area of antitrust e-payments issues. We secured the largest antitrust settlement in U.S. history in In Re Visa Check/MasterMoney Antitrust Litigation, a case brought by clients Wal-Mart Stores, Inc., Sears Roebuck & Co., The Limited, Inc., Circuit City Stores, Inc. and Safeway, Inc. on behalf of a certified class of approximately four million retailers that were forced to accept Visa/MasterCard signature debit transactions at supra-competitive prices. The case resulted in a monetary settlement of $3.4 billion and injunctive relief of $25 billion (conservatively estimated) – after the plaintiffs class was awarded summary judgment on a number of issues and after a jury was selected.

The firm also secured the third largest antitrust settlement on behalf of its client, Discover Financial Services, Inc. Discover sued Visa and MasterCard under Sherman Act § 1 for issuing and enforcing rules that precluded their bank members from issuing Discover-branded cards. The case resulted in a monetary settlement of $2.75 billion on the eve of trial.

The firm continues to be at the forefront of payments antitrust litigation. We now represent a number of large merchants – including Wal-Mart, Costco, Best Buy, The Gap, IKEA, Starbucks and Lowe’s, among others – and several trade associations who object to the proposed class settlement in In Re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation – a settlement that violates absent class member due process rights.

The firm also represents payments players before governmental antitrust enforcers and regulators. We have represented a number of parties before the Department of Justice and state Attorneys General. We also represented the Retail Industries Leadership Association and the Merchant Payments Coalition before the Federal Reserve in connection with regulations adopted per the Dodd-Frank Wall Street Reform and Consumer Protection Act: these regulations concerned debit card transactions and debit card interchange fees.

The firm also counsels Electronic Fund Transfer Networks, Merchants, and Trade Associations on antitrust and regulatory issues raised by e-payments.

Finally, the firm often speaks and/or writes on these issues. Following are articles and presentations that the firm has authored relevant to E-Payments.

  • Visa, Returning to Old Ways, Squelches Competition in Debit
    American Banker (June 26, 2012)
    Click here to read the article.
  • Feedback: Interchange Amendments is Pro-, Not Anti-Consumer
    American Banker (May 24, 2010)
  • Hospitality Merchants at Legal Crossroads
    Lodging Hospitality (May 10, 2010)
  • Let’s End the Debit Card Fee-for-All – The Fed needs to start exercising oversight over debit card
    fees

    BusinessWeek (October 15, 2009)
    view the article
  • VIEWPOINT: Interchange Facing an Unsteady Future
    American Banker (April 2009)
  • Class Potential for Interchange Lawsuit
    American Banker (July 20, 2007)
    download PDF
  • The Visa Check/MasterMoney Antitrust Litigation: an Early Report on the Comparative Efficacy of Antitrust and Federal Reserve Intervention to Repair the Failed United States’ Debit Card Market
    N.Y.U.J.L. & BUS. (FALL 2005)
  • The Great Canadian Debit Debate
    Credit Card Management (May 2004)
    download PDF
  • Wal-Mart Decision Illustrates Merchants’ New Debit Power
    American Banker (February 6, 2004) pg 6.
    download PDF
  • E-Payment Network Directors Risk Antitrust Scrutiny
    American Banker, September 7, 2001, at 6.

Payments News Update – March 4, 2021

Posted  03/4/21
Legal and Regulatory Developments SPOTLIGHT: UK Launches Antitrust Probe Into Apple CNN Business – March 4, 2021 The United Kingdom's competition watchdog has launched an investigation into Apple (AAPL) after app developers complained that they're being forced to use the company's payment systems and distribute their products via its App Store. The Competition and Markets Authority said Thursday that it will...

Payments News Update – February 18, 2021

Posted  02/18/21
Legal and Regulatory Developments SPOTLIGHT: Feds Probing American Express' Business, Consumer Card Sales Practices The Hill – February 12, 2021 American Express disclosed on Friday that several federal agencies are probing its sales practices for its small business credit cards and consumer cards. The company said in a regulatory filing that it received a grand jury subpoena in January from the U.S....

Payments News Update – February 11, 2021

Posted  02/11/21
Legal and Regulatory Developments SPOTLIGHT: Big Banks, Big Tech Face off Over Swipe Fees American Banker – February 7, 2021 The fees generated from consumers’ debit card spending have long been a source of acrimony between big banks and retailers. But now the banks have a new adversary: Apple, PayPal and other fresh competitors from the tech industry. In recent months, banking heavyweights have sought to...

Payments News Update – January 28, 2021

Posted  01/28/21
Legal and Regulatory Developments SPOTLIGHT: UK Merchants to Face Post-Brexit Fee Increase From Mastercard Business Insider – January 26, 2021 In response to Brexit, Mastercard is reportedly planning to increase fees for UK online card purchases. And this move could negatively affect cash-strapped merchants. Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Payments & Commerce...

Payments News Update – January 21, 2021

Posted  01/21/21
Legal and Regulatory Developments SPOTLIGHT: CFPB Under Chopra Will Be Aggressive Consumer Watchdog, Experts Say Compliance Week – January 19, 2021 Rohit Chopra, currently a Democratic commissioner on the Federal Trade Commission, has been nominated by President-elect Joe Biden to lead the Consumer Financial Protection Bureau (CFPB). Unlike some Biden nominations (think Janet Yellen at the Treasury...

Payments News Update – January 14, 2021

Posted  01/14/21
Legal and Regulatory Developments SPOTLIGHT: Visa Will Not Acquire Plaid After Running Into Regulatory Wall TechCrunch – January 12, 2021 Visa and Plaid called off their agreement this afternoon, ending the consumer credit giant’s takeover of the data-focused fintech API startup. The deal, valued at $5.3 billion at the time of its announcement, first broke cover on January 13, 2020, or nearly one year ago...

Payments News Update – December 17, 2020

Posted  12/17/20
Legal and Regulatory Developments SPOTLIGHT: Will a U.K. Class Action Case Influence Interchange Policy in the United States? Digital Transactions News – December 14, 2020 A class of 46 million consumers in the United Kingdom cleared a major hurdle last week when the country’s Supreme Court ruled that a class-action suit brought against Mastercard Inc. for excessive interchange fees can proceed. But they...

Payments News Update – December 10, 2020

Posted  12/10/20
Legal and Regulatory Developments SPOTLIGHT: Facebook’s Antitrust Problems Are Jeopardizing Its Plans for WhatsApp Quartz – December 9, 2020 Facebook doesn’t make much money from WhatsApp. But CEO Mark Zuckerberg has said that forcing the company to sell the messaging app—as US prosecutors have called for in a new antitrust suit filed on Dec. 9—represents an “existential” threat to the business....

Payments News Update – December 3, 2020

Posted  12/3/20
Legal and Regulatory Developments SPOTLIGHT: Visa Is Doing What Big American Companies Do to ‘Protect This Business’ The New York Times – December 2, 2020 (subscription required) Visa dominates the lucrative business of processing debit card transactions. Merchants must choose between paying the financial services company’s fees or forgoing sales to the millions of Americans who carry cards emblazoned...
1 2 3 4 5 6 10

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: