Order submitted to stop the company’s block of competing processing networks.
The Federal Trade Commission (FTC) has found Mastercard’s online business practices to be a violation of the Durbin Amendment and has ordered the company to take the actions necessary to be in compliance with the law.
The Durbin Amendment to the Dodd-Frank Act caps fees on debit card transactions and allows business owners to process all debit cards on independent, less fee-heavy networks. According to the investigation that accompanies the FTC’s order, Mastercard has been taking advantage of the privacy of e-commerce transactions to prevent the use of their debit cards in online shops that do not specifically use Mastercard’s processing network.
“This is a victory for consumers and the merchants who rely on debit card payments to operate their businesses,” said Holly Vedova, Director of the FTC’s Bureau of Competition. “Congress directed the FTC to enforce this part of the Dodd-Frank Act and prevent precisely this kind of illegal behavior.”
As the Lord Leads, Pray with Us…
- For members of the FTC as they seek to protect American consumers.
- For Chair Lina Khan to seek God’s direction for the commission’s focus.
- For the leaders of American businesses to comply with the law.
Sources: Federal Trade Commission
