ICBA Bancard Condemns Wal-Marts Decision to Stop Accepting MasterCard Signature-Based Debit Transact

Saturday 6 December 2003 07:40 CET | News

Wal-Marts decision to decline MasterCard signature-based debit transactions is bad news for small businesses and consumers. Obviously, if this spreads to other large merchants, the United States efficient payment processing system will be Balkanized, where those with the most market clout pay the least freight, to the competitive disadvantage of smaller merchants.Linda F. Echard, president and CEO of ICBA Bancard, was dismayed with the Arkansas-based retailers announcement. "This decision by Wal-Mart will confuse and frustrate consumers about debit card acceptance. Consumers may revert to cash and checks resulting in lost revenue opportunities and increased costs for small merchants and issuers." Echard adds that Wal-Marts decision to not accept MasterCard signature debit has taken the choice about how to pay for goods and services from consumers and placed it in the grasp of big retailers. "In the unlikely event that consumers are tossed a few pennies in rolled-back prices, it will hardly offset the inconvenience of non-acceptance or the confusion over whether their MasterCard (debit or credit) cards will be accepted." As an association, MasterCard exists solely for the purpose of supporting thousands of competing card issuing financial institutions, which results in a world rich with card choices for consumers and businesses alike. Wal-Marts latest step threatens our diversified financial system and the incredibly pro- consumer payments system that has built consumer credit in America.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce