Crossfire: Nine Reactions to Swipe Fees Settlement
Published July 18, 2012 8:27 AM
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Updated July 18, 2012 8:29 AM
1 Min Read
Resounding Victory
"The release [from future litigation] is a breathtaking success for the bankcard industry. … It should end the industry's antitrust wars for years to come."
Duncan MacDonald, consultant and former general counsel of Citigroup's Europe and North America card businesses
Not So Fast
"While merchants give up their right to sue the networks and credit-card issuers over similar issues, I expect they will continue their vigorous lobbying efforts in Washington … to win interchange reductions."
Eric Grover, consultant at Intrepid Ventures
Future Uncertain
"It's a little hard to sit there right now and come to some sort of judgment as to what the impact could be on Citi cards businesses. And whatever impact it will be, it will be based upon factors really outside of our control."
John Gerspach, Citigroup chief financial officer
Hollow Victory
"The best outcome for this settlement is for it to fail." (Image: Thinkstock)
A senior executive at a large retailer, which was not involved in the lawsuits
King Of The Hill
"In the short run, merchants may see some benefits - a big cash payout, the right to surcharge, and some additional negotiating rights. But there was no long-term change in interchange rates or how they are structured."
Janet R. Langenderfer, consultant and former senior director of credit cards at Amtrak
Buyer's Remorse
"None of the announced terms of the settlement will materially alter the long-term upward course of interchange."
Andrew Kahr, formerly the founding chief executive of First Deposit, later known as Providian
Main Street Milestone
"Consumers will be gradual winners. They won't get reduced prices in any meaningful way … but they will see a wider array of products from financial institutions and rewards from merchants."
David True, consultant and former MasterCard executive
Brighter Future
"The networks achieved their most important goal: the right to set interchange rates going forward without further litigation or regulation."
Tony Hayes, a partner at consultancy Oliver Wyman
More Money, More Problems
"Litigation is not the vehicle to affect change … if retailers truly want to change the payment landscape they need to play a role in building or acquiring a payment network."
Philip Philliou, consultant and former executive at MasterCard and American Express
