MasterCard Reiterates Support for Two Tiers
WASHINGTON – MasterCard reiterated its support for the two-tiered debit interchange system, its commitment to monitoring merchants, and shared how CUs can report card acceptance issues during a phone conference hosted by CUNA Wednesday.
The one-hour call covered many issues CUs have been asking about, including that the payment network intends to keep the existing rate structure in place. MasterCard noted, however, those rates are “subject to market forces.” The company’s final rate decisions will be made within 30 days of Oct. 1.
MasterCard explained it will have an online registration process that MasterCard-affiliated financial institutions must complete regardless of asset size. The payment network confirmed it will be monitoring merchants diligently, looking for any reports of merchants not accepting cards or frustrating acceptance of credit union cards.
Credit unions on the call were concerned about whether MasterCard will have a reporting mechanism so CU members can report to MasterCard if there are acceptance issues. The company said a reporting mechanism is now in place that deals with merchants violating current rules.