• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Sunday, May 25, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home News

The FTC mandates that Mastercard accept debit transactions from other payment networks

by Sneha Singh
December 26, 2022
in News
Reading Time: 2 mins read
0
MasterCard
TwitterWhatsappLinkedin

Mastercard has been ordered by the Federal Trade Commission to begin giving rival payment networks the data they require to handle debit card payments. The FTC said in a proposed enforcement action made public on Friday that Mastercard had allegedly violated the Durbin Amendment of the Dodd-Frank Act by forbidding merchants from routing transactions over alternative networks.

You might also like

Walmart Layoffs Spark H-1B Backlash: CTO Suresh Kumar Caught in the Crossfire

X Restores Service After Global Outage Linked to Oregon Data Center Fire

German Court Rules Cookie Banners Must Include a ‘Reject All’ Cookies Button

The “tokenization” technology that powers mobile payment services like Apple Pay, Google Pay, and Samsung Pay is the object of the case. When you use the mobile wallet on your phone to make a transaction using a debit or credit card, the software replaces sensitive data, such as the primary number linked to your account, with a different set of one-time use “tokens.”

Since tokens don’t contain any information that could be used for fraud while in transit, MasterCard and Visa claim that the method prevents it. They don’t point to anyone until they reach Mastercard or Visa’s computers and are mapped back to the original account holder.

The FTC claims Mastercard has long prevented rival networks from accessing their token vault. This implies that anytime customers choose to pay with a mobile wallet, retailers are required to route the transactions through Mastercard (or Visa) and pay the company’s transaction fees, which are frequently higher than those of its rivals.

Mastercard will provide greater choices

According to the Durbin Amendment, banks must provide two rival payment networks for all debit cards. It was a clause Congress added to encourage network competition. However, if a comparable deal was made with Visa, the FTC did not specify.

Mastercard

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 included the Durbin Amendment. It placed a limit on the processing fees large banks (assets of more than $10 billion) can charge businesses using debit cards. Additionally, it compelled Visa and Mastercard to offer merchants the choice to route those payments over at least two independent networks, including their own, as well as a separate processing network like Star, NYCE, or Shazam, which typically offers lower swipe fees and comparable, or perhaps even superior, security.

“While we are taking these steps to bring this matter to a close, there should be no question that tokenized transactions provide increased protection to both consumers and merchants,” Mastercard spokesperson Seth Eisen said.

“This focus on security guides our efforts in a highly competitive market and provides the incentive for us to continue investing in innovations that promote the peace of mind every person expects.” Eisen added that Mastercard would “continue to work on updating our processes to comply with the consent order and provide even greater choice.” Before imposing the injunction against Mastercard, the FTC intends to gather public feedback.

Tags: Apple PayDebit CardsFTCGoogle PayMasterCardSamsung Payvisa
Tweet54SendShare15
Previous Post

Currently, DuckDuckGo prevents Google sign-in pop-ups on all websites

Next Post

Rayman 4 Source Code Has Leaked Online

Sneha Singh

Sneha is a skilled writer with a passion for uncovering the latest stories and breaking news. She has written for a variety of publications, covering topics ranging from politics and business to entertainment and sports.

Recommended For You

Walmart Layoffs Spark H-1B Backlash: CTO Suresh Kumar Caught in the Crossfire

by Anochie Esther
May 25, 2025
0
Walmart

Walmart is facing mounting backlash after announcing the layoff of approximately 1,500 employees in its technology, e-commerce fulfillment, and advertising divisions. The announcement has not only raised concerns...

Read more

X Restores Service After Global Outage Linked to Oregon Data Center Fire

by Anochie Esther
May 25, 2025
0
X

X, the social media platform formerly known as Twitter, is coming back online for most users after suffering what appears to be a significant international outage. The disruption...

Read more

German Court Rules Cookie Banners Must Include a ‘Reject All’ Cookies Button

by Anochie Esther
May 25, 2025
0
Cookies

In a landmark decision for digital rights and privacy, the Hanover Administrative Court has ruled that cookie banners on websites operating in Germany must provide users with a...

Read more
Next Post
Rayman 4 Source Code

Rayman 4 Source Code Has Leaked Online

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?