FTC finalizes consent ordering for illegal business tactics, restricting debit payment transactions.
The Federal Trade Commission (FTC) has finalized a consent order that addresses Mastercard’s illegal tactics which forced merchants to use its payment network alone for debit card transactions. After a public comment period, the FTC mandated that the company provide competing networks with required customer account information to process debit card payments.
Mastercard was found to be in violation of the Durbin Amendment and Regulation II, which are provisions of the 2010 Dodd-Frank Act, as the company effectively blocked merchants from routing e-commerce transactions through alternative payment card networks.
Mastercard is now prohibited from engaging in any actions that obstruct merchants’ ability to select competing debit card networks.
As the Lord Leads, Pray with Us…
- For FTC Commissioner Lina Khan as she seeks to ensure competition in U.S. commerce.
- For the commissioners of the Federal Trade Commission to make wise decisions in their regulation of U.S. trade.
- For merchants who will now have options with regard to debit card transaction processing.
Sources: Federal Trade Commission
