21 June 2018
Register for the webinar today

Visa blinks first in NZ interchange case

13 August 2009  |  8887 views  |  0 credit card

Visa is to adjust its interchange rules in New Zealand and pay NZ$2.6 million to the country's competition authority to settle a two-year old civil suit brought against the card scheme. Anti-trust claims against MasterCard and six banks remain outstanding and will be heard at the High Court in Auckland in October this year.

The New Zealand Commerce Commission issued civil proceedings in November 2006 against Visa, Mastercard and 11 banks and other financial institutions for alleged price-fixing in relation to credit card interchange fees.

In settling the claim, Visa has agreed to allow individual card issuers to set their own interchange fees up to an agreed maximum and to open the scheme to non-bank acquirers. Merchants will also be allowed to apply surcharges to credit card transactions and encourage customers to pay by other means.

"Those changes are in the long-term best interests of both New Zealand consumers and retailers," says Commerce Commission Chair Dr Mark Berry. "The Commission considers that this increased transparency will assist retailers and customers in making decisions about their payment choices."

The NZ$2.6 million payment by Visa is intended to cover the Commission's costs in raising the proceedings.

The Commission's claims against ANZ National Bank Limited, Bank of New Zealand, Westpac New Zealand Limited, ASB Bank Limited, Kiwibank and TSB Bank Limited in relation to interchange fees in the Visa scheme continues, as does its claim against those banks, MasterCard and The Warehouse Financial Services Limited in relation to the MasterCard rules.

The Commerce Act provides for penalties for price-fixing of up to the higher of $10 million per breach, or either three times the commercial gain resulting from the breach or 10% of a company's turnover.
KeywordsLEGAL

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

US authorities push interchange negotiation bill

US authorities push interchange negotiation bill

05 June 2009  |  6246 views  |  0 comments
EC hits Visa Europe with interchange antitrust charge

EC hits Visa Europe with interchange antitrust charge

06 April 2009  |  10580 views  |  0 comments
MasterCard re-introduces interchange fees for cross-border payments

MasterCard re-introduces interchange fees for cross-border payments

01 April 2009  |  12339 views  |  0 comments
Eurozone banks told to ditch direct debit interchange by 2012

Eurozone banks told to ditch direct debit interchange by 2012

24 March 2009  |  9030 views  |  1 comments
Canadian authorities to probe debit, credit card fees

Canadian authorities to probe debit, credit card fees

09 March 2009  |  7725 views  |  1 comments
Merchants win collective bargaining powers over US interchange fees

Merchants win collective bargaining powers over US interchange fees

17 July 2008  |  7639 views  |  0 comments
New Zealand regulator alleges price fixing of interchange fees

New Zealand regulator alleges price fixing of interchange fees

10 November 2006  |  6795 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://info.nice.com/Visit www.aciworldwide.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
GPS raises £44 million to fund international growthGPS raises £44 million to fund intern...
23044 views comments | 7 tweets | 8 linkedin
DBS to use robot to screen applicants for human jobsDBS to use robot to screen applicants for...
8732 views comments | 3 tweets | 7 linkedin
Robots save Nordea from GDPR processing nightmareRobots save Nordea from GDPR processing ni...
8720 views comments | 10 tweets | 17 linkedin
BIS: Cryptocurrencies are an environmental disaster that could break the InternetBIS: Cryptocurrencies are an environmental...
7837 views comments | 18 tweets | 23 linkedin
BBVA aims to convert half of its customer base to mobile banking within the next yearBBVA aims to convert half of its customer...
7365 views comments | 13 tweets | 18 linkedin

Featured job

to GBP £90K base, double OTE (estimate)
London, UK or Europe

Find your next job