The U.S. Federal Trade Commission (FTC) has finalized a consent order that will settle charges against Mastercard (NYSE:MA) that alleged the Purchase-headquartered company utilizied illegal business tactics that forced merchants to route debit card payments through its payment network.
Under the FTC”™s order, Mastercard will need to provide competing networks with customer account information that these networks need to process debit payments. This action reverses the tactic Mastercard allegedly used to prevent merchants from accessing competing networks to process certain ecommerce debit payments. The FTC alleged that practice violated provisions of the 2010 Dodd-Frank Act known as the Durbin Amendment and its implementing rule, Regulation II, that require banks to enable at least two unaffiliated networks on every debit card.
The FTC alleged that Mastercard violated the law by setting policies that effectively blocked merchants from routing ecommerce transactions using Mastercard-branded debit cards saved in e-wallets to alternative payment card networks.
In announcing the consent order, the FTC did not identify any financial penalties against Mastercard or a requirement that the company acknowledge its actions. Mastercard did not issue a public statement on the FTC”™s announcement.
