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Visa And Mastercard Agree To $30 Billion Settlement That Will Lower Merchant Fees

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A long-running antitrust lawsuit launched by retailers has been settled by Visa, Mastercard, and the banks that issue credit cards via them, two of the biggest credit card networks in the world.

According to a news release announcing the settlement Tuesday morning, the settlement is expected to reduce retailers’ swipe fees when customers make purchases using their Visa or Mastercard by $30 billion over five years.

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Visa And Mastercard Agree To $30 Billion Settlement That Will Lower Merchant Fees

The settlement is the outcome of a lawsuit filed in 2005 and exclusively pertains to US merchants. Everything is deemed final unless the US District Court approves it for the Eastern District of New York. Even in that instance, there may be a protracted appeals process.

According to the National Retail Federation, swipe fees typically cost retailers 2% of a client’s total transaction, but they can cost as much as 4% for certain premium rewards cards. The settlement would reduce such fees by at least 0.04 percentage points for a minimum of three years.

Furthermore, the settlement calls for Visa and Mastercard to continue charging swipe fees at the same rates as of December 31, 2023, for five years.

The NRF told CNN that the trade association for retailers had “some very real concerns” about the settlement.

Stephanie Martz, the general attorney and chief administrative officer of the NRF, told CNN that the lower swipe fees that may result from the settlement won’t significantly alter the landscape for retailers. Martz continued, “The savings would amount to pennies on the dollar.”

She continued, “The fact remains that these fees are an unfair business practice that benefits banks and harms consumers and merchants.”

How the changes will affect cardholders
While retailers have long said that swipe fees compel them to raise prices, customers would not necessarily save money due to the settlement.

This is so that retailers can charge extra to clients based on the type of Visa or Mastercard they use, thanks to the settlement. Cardholders who receive benefits like cash back or airline miles would suffer as a result of those surcharges due to the potential increase in swipe costs.

Conversely, as merchants could work with banks to persuade them to use what they saw as a favored card, some cardholders might receive discounts on goods and services.

Businesses that take Visa or Mastercard must take both types of cards.

Kim Lawrence, president of Visa North America, released a statement on Tuesday morning stating that the perks that Visa cardholders enjoy will not change. Furthermore, the deal will not further restrict Americans’ access to credit.

Mastercard spokesman Seth Eisen states that the settlement will not affect rewards or credit availability.

However, TD Cowen analyst Jaret Seiberg stated in a note on Tuesday that the settlement “will represent a threat to credit card rewards and small banks.” He bases this on his suspicion that retailers will “steer customers to preferred credit cards.”

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Visa And Mastercard Agree To $30 Billion Settlement That Will Lower Merchant Fees

According to Seiberg, smaller banks and credit unions are likely to oppose the settlement because it might significantly disadvantage them compared to larger banks that find it easier to negotiate with some of the biggest merchants in the country, such as Walmart.

An alternative to the recently proposed credit card legislation?
In addition to the settlement, a group of senators and representatives from both parties are advocating for new legislation that will lessen the power of Visa and Mastercard.

If the idea is approved, the biggest credit card issuers—JPMorgan Chase, Bank of America, and Citibank—would have to collaborate with two rather than just one processor. Additionally, they are unable to use both Visa and Mastercard as their processors.

Even when the settlement is finalized, NRF and other trade associations representing merchants will continue to support these rules.

However, the Republican leader of the House Financial Services Committee, Rep. Patrick McHenry, praised the settlement, calling it “welcome news.”

In a post on X on Tuesday morning, he stated that “legislation isn’t always as practical as commercial or private sector solutions.”

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Visa And Mastercard Agree To $30 Billion Settlement That Will Lower Merchant Fees

The announcement on Tuesday comes just one month after Discover (DFS) and Capital One (COF) said they would merge, creating the largest credit card firm in the country if shareholders and financial regulators agreed. According to Seiberg, the settlement may make the merger more difficult to approve.

According to him, Capital One, which presently offers credit cards through Visa and Mastercard, would probably attempt to increase the number of people who use its credit cards by securing more agreements with retailers.

Following the deal’s announcement, Visa (V) and Mastercard (MA) shares slightly increased.

SOURCE – (CNN)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Global Negotiations On A Treaty To End Plastic Pollution At Critical Phase In Canada

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Ontario, Canada. Negotiators from most states are currently discussing the draft of a worldwide treaty aimed at eradicating plastic pollution, marking the first instance of such negotiations.

Delegates and observers at the Intergovernmental Negotiating Committee on Plastic Pollution regarded it as a positive development, and discussions have transitioned from conceptualization to the formulation of a treaty at this fourth out of five planned plastics summits.

The concept of internationally restricting the production of plastic is highly controversial. The document continues to exist despite the vehement opposition from countries and companies involved in plastic production, as well as oil and gas exporters. The majority of plastic is derived from fossil fuels and chemical compounds.

The Ottawa session was set for late Monday or early Tuesday. During Monday night’s meeting, there was a heated debate about whether the working groups should prioritize the issue of plastic manufacture before the upcoming and final meeting.

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AP – VOR News Image

Global Negotiations On A Treaty To End Plastic Pollution At Critical Phase In Canada

According to Stewart Harris, a representative of the International Council of Chemical Associations, the members are advocating for a treaty that specifically addresses the recycling and reuse of plastic, sometimes known as “circularity.”

Harris expressed the desire for the deal to be finalized. “We desire to collaborate with the governments in order to execute it.” The private sector has a significant responsibility to fulfill.

Many scientists from the Scientists’ Coalition for an Effective Plastics Treaty attended the meeting to present scientific facts on plastic pollution to negotiators. Their objective was to counteract any misinformation that may be circulating.

Bethanie Carney Almroth, an ecotoxicology professor at Sweden’s University of Gothenburg and coalition co-leader, stated that yesterday’s claim about the lack of microplastic data is factually incorrect. In reality, there have been 21,000 published articles on micro and nanoplastics. “It resembles the game Whac-A-Mole.”

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AP – VOR News Image

Global Negotiations On A Treaty To End Plastic Pollution At Critical Phase In Canada

According to her, scientists have been subjected to harassment and intimidation by lobbyists. She informed the United Nations that a lobbyist shouted directly at her during a meeting.

Ecuador’s lead negotiator, Walter Schuldt, stated that despite their divergences, the countries represented have a shared objective of advancing in the treaty process.

“In the interview, he emphasized that we are discussing the preservation of life in the future, encompassing not only human life but also all forms of life on Earth,” he stated.

He expressed his pride in participating in and contributing his small but meaningful effort to the worldwide initiative to tackle an environmental issue.

The negotiators’ objective is to finalize a treaty by the conclusion 2024. The topics given to expert working groups by tonight will progress to the final stage of discussions in autumn in South Korea.

Without undertaking this preparatory work in between meetings, it would be intimidating to successfully conclude the negotiations within this year. Several nations expressed their dedication to collaborating during the intervals between talks on Sunday evening.

The treaty negotiations commenced in Uruguay in December 2022, and Rwanda and Peru’s subsequent submission of the resolution initiated the process in March 2022.

Progress was sluggish at the Paris discussions in May 2023 and the Nairobi talks in November as countries deliberated about the process’s regulations.

Upon the arrival of numerous negotiators and observers in Ottawa, Luis Vayas Valdivieso, the committee chair from Ecuador, reminded them of their objective and urged them to exhibit ambition.

“We have a responsibility to create a new treaty that will stimulate and direct the necessary actions and global collaboration to achieve a future devoid of plastic pollution,” he stated. “We must not disappoint them.”

The delegates have discussed the treaty’s scope, chemicals of concern, problematic and avoidable plastics, product design, and financing and implementation.

Delegates also simplified the cumbersome assortment of choices from the previous meeting.

Many individuals journeyed to Ottawa from communities impacted by plastic manufacture and pollution. Residents residing near petrochemical plants and refineries in Louisiana and Texas distributed postcards to the U.S. State Department with the message, “We desire your presence.”

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AP – VOR News Image

Global Negotiations On A Treaty To End Plastic Pollution At Critical Phase In Canada

The members of the Break Free From Plastic movement journeyed collectively and urged negotiators to personally witness air and water contamination in their regions.

“This remains the most optimal choice we possess to witness transformation in our communities.” Corporations heavily influence them. Jo Banner, a St. John the Baptist Parish resident in Louisiana, expressed their inability to attend the local government. “It seems that this is my sole opportunity and source of optimism to assist my community in recovering and finding solace.”

Members of an Indigenous Peoples’ Caucus held a news conference on Saturday. They expressed concern that microplastics are polluting their food supply. They emphasized that this pollution threatens their communities and ways of life, which are guaranteed to them indefinitely. They perceived a lack of acknowledgment of their opinions.

“Our stakes are larger.” “These are our hereditary territories that are being contaminated with plastic,” Juressa Lee, a resident of New Zealand, expressed following the occurrence. “We are individuals or groups who possess legal rights, rather than individuals or groups with an interest or involvement in a particular issue.” We should be granted greater autonomy in expressing our opinions and judgments than individuals responsible for the issue.

Historically, plastic was not present, but currently, in the Bay of Plenty, the sediment and shellfish, which serve as their seafood supply, are contaminated with little plastic particles. Lee stated that they consider nature’s “resources” as valuable assets.

“Indigenous methods can serve as a guiding force,” Lee stated. “The current approach we are taking is evidently ineffective.”

Vi Waghiyi journeyed from Alaska to advocate for the rights and interests of Arctic Indigenous communities. She emphasizes to decision-makers the need to ensure that this pact provides long-term protection against plastic pollution for future generations.

She stated that their purpose in being here is to serve as the moral compass, ensuring that the decisions made are in the best interest of all individuals.

SOURCE – (AP)

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Supreme Court Rejects Musk Appeal Over Tweets That Must Be Approved By Tesla

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WASHINGTON – On Monday, the Supreme Court dismissed Elon Musk’s appeal about a deal with securities authorities. The settlement mandates that Elon obtain prior approval for some tweets related to Tesla, the electric vehicle firm he heads.

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Ad Age – VOR News Image

Supreme Court Rejects Musk Appeal Over Tweets That Must Be Approved By Tesla

The justices refrained from making any comments and upheld the lower court’s findings against Musk. Elon said that the requirement constitutes a “prior restraint” on his expression, which he believes violates the First Amendment.

The case arises from tweets Musk sent in 2018, in which he asserted that he had obtained the necessary funds to privatize Tesla. The tweets significantly increased the company’s stock price and prompted a temporary suspension of trading.

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Insider – VOR News Image

Supreme Court Rejects Musk Appeal Over Tweets That Must Be Approved By Tesla

As part of the agreement with the Securities and Exchange Commission, it was mandated that his tweets must receive prior approval from a legal representative at Tesla. Additionally, it demanded that Elon and Tesla be subjected to monetary penalties for the tweets in which Elon claimed to have “secured funding” to privatize Tesla for $420 per share.

Tesla still needs to obtain the necessary capital to continue to be a publicly-traded company.

The SEC’s initial enforcement action against Elon claimed that his tweets on the privatization of the company violated antifraud provisions of securities laws.

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India Times – VOR News Image

Supreme Court Rejects Musk Appeal Over Tweets That Must Be Approved By Tesla

The agency initiated an investigation in 2021 to determine whether Musk breached the settlement by failing to obtain prior clearance before soliciting his Twitter followers, currently numbering X, for their opinion on whether he should sell 10% of his Tesla shares.

In 2022, Elon purchased Twitter.

SOURCE – (AP)

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EU Investigates Meta Over Fears Of Election Interference And Foreign Disinformation

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European Union authorities are investigating Meta because they worry that the firm has not taken sufficient measures to safeguard the next EU elections or address the issue of foreign disinformation on its platforms. This investigation could result in significant fines or other types of punishment.

On Monday, the European Commission revealed that the new investigation specifically focuses on management of fraudulent and foreign actors interfering in elections advertising. The investigation will also look into Meta’s decision to discontinue a tool that journalists and researchers frequently use to keep an eye on facebook’s platforms.

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reuters – VOR News Image

EU Investigates Meta Over Fears Of Election Interference And Foreign Disinformation

The probe represents the most recent instance of European regulators asserting their authority over US tech firms in response to implementing a series of new regulations to curb their power.

Authorities have stated that the inquiry brings attention to evident breaches of the Digital Services Act, Europe’s prominent legislation regulating internet platforms. If the crimes are verified, they might result in substantial fines amounting to 6% of Meta’s worldwide turnover.

As part of the investigation, officials are examining if Meta’s efforts to reduce the ranking of political information in users’ feeds may breach the transparency regulations of the DSA. Furthermore, Meta’s options for users to report illicit content do not seem to comply with the criteria of the DSA.

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reuters – VOR News Image

EU Investigates Meta Over Fears Of Election Interference And Foreign Disinformation

The probe follows Meta’s submission of necessary documentation to the European Commission last autumn, detailing its approach to addressing perceived hazards associated with its products. The probe conducted on Monday shows the European Union’s doubt that Meta has effectively mitigated such risks.

The study places a lot of emphasis on Meta’s decision to stop using CrowdTangle, a tool that civil society organizations had previously used to keep an eye on hot topics on Facebook and Instagram.

According to the European Commission, in the absence of it, users and researchers may encounter less transparency regarding the operations of Meta services, which could limit their ability to spot and address instances of foreign election manipulation.

The company announced earlier this year that CrowdTangle will cease to be accessible after August 14.

The European Commission has stated that discontinuing support for CrowdTangle without a suitable alternative could harm civic discourse and electoral processes. This includes tracking and identifying mis- and disinformation, detecting voter interference and suppression, and providing real-time transparency to fact-checkers, journalists, and other stakeholders involved in elections.

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bloomberg – VOR News Image

EU Investigates Meta Over Fears Of Election Interference And Foreign Disinformation

A spokeswoman from Facebook stated that the company will collaborate with the investigation.

The representative stated that our platforms have a firmly established procedure for identifying and reducing hazards. “We anticipate maintaining our collaboration with the European Commission and furnishing them with additional specifics regarding this project.”

SOURCE – (CNN)

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