Mastercard Faces £14 Billion Suit for Overcharging in the UK

Mastercard is facing a £14 billion class action lawsuit in the UK alleging that they have overcharged in interchange fees. (www.pymnts.com). The case is brought under the Consumer Rights Act 2015, which regulates anti-competitive acts by companies. It is another case alleging anti-competitive behavior, like the one that Visa and Mastercard lost earlier in June 2020 (www.pymnts.com). 

The United States has some of the highest interchange fees in the world. These lawsuits are notable because the UK and the European Union already have fees which are substantially lower than those in the US. This difference is due to how each country regulates interchange fees. The fees end up being paid by merchants, and essentially are an extra “hidden” tax by financial companies. 

(Joe Resendiz at Valuepenguin.com) 

Interchange fees are somewhat arbitrary and the only reason the US pays some of the highest fees is because the US has less regulation, allowing the credit card brands to charge higher fees. Team Merchant is an advocate of lower interchange fees and we believe reducing these fees would put money back into small businesses and help consumers pay less.  

Client Spotlight: Home Bistro Cleveland

Emily and Victor Gilbert, owners of Home Bistro in Chicago, Illinois, decided to close their restaurant and move back home to Cleveland, Ohio.

For Emily, it was a hard decision to close the restaurant she loved. She decided to open a new restaurant in her hometown and named it “Home Bistro Cleveland” - paying homage to the original Home Bistro. After looking at several locations, she decided on an old building in a section of Cleveland known as Little Italy.

Although the building required extensive renovations, Emily felt it was worth investing in because it had charm and historical value. With a little capital and some elbow grease, she quickly put her vision to work.

Compared to the old Home Bistro, the new restaurant would have a full bar, beautiful seasonal patio and be much larger. Emily knew there would be new challenges with inventory and orders. She wanted to automate those processes as much as possible, so she reached out to Team Merchant for help.

Team Merchant was able to set her up with a new Clover POS system, thus saving her time and money so she could focus more on providing her customers the best dining experience possible.

Home Bistro Cleveland is now open, processing payments and running smoothly! Emily now has time to sit and enjoy a cocktail on her beautiful seasonal patio. Welcome home Emily!