“We believe that an amicable resolution is in the best interests of our stakeholders. Although we have strong defenses to the claims, a settlement avoids the continued costs and uncertainties that are inherent in litigation.”
Under the terms of the agreement, Mastercard will pay CAD$19.5 million on a pre-tax basis. Mastercard has also agreed to make modifications to its No Surcharge Rule to allow Canadian merchants to impose checkout fees on credit cards, subject to certain conditions designed to protect cardholders. Such conditions include a surcharge cap, a requirement for merchants to disclose their surcharging practices, and provisions to ensure a level playing field with cardholders of competing payment networks.
“This agreement includes important safeguards around the disclosure and level of surcharge to protect consumers.”
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.