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NewsBriefs

This article contains excerpts from news stories recently posted under ties, exemptions and notifications, according to recent re-
Breaking Industry News on our homepage. For links to these and other ports. In a recent interview with Law360 Pulse, Paul Hast-
full news stories, please visit www.greensheet.com/breakingnews. ings partners Dana Syracuse, and Josh Boem, who serve
php. in the firm's fintech and global payments practice, com-
mended the State of New York for its regulatory leader-
ship.
GTCR buys majority stake in Worldpay

How does a company lose $17 billion in the space of four
years? Fidelity National Information Services, better
Mastercard, Visa, agree to debit card known as FIS, did it by acquiring leading payment pro-
routing choice – in Australia cessor Worldpay. FIS just disclosed it is selling a 55 per-
cent stake in Worldpay to the private equity firm GTCR
Mastercard and Visa entered into an agreement with the for $11.7 billion. GTCR also has committed to invest up to
Reserve Bank of Australia, that country's central bank and $1.25 billion in Worldpay to be used "to pursue inorganic
payment systems regulator, not to dissuade merchants growth opportunities."
from routing debit card transactions through alternative
networks. The news out of the RBA follows a Federal Trade FIS said the deal values the payment processing business
Commission order that Mastercard cease "illegal business at $17.5 billion, about half the $35 billion in cash and stock
tactics" that force merchants to route debit card payments paid for Worldpay back in 2019. That combination of cash
through Mastercard. and stock put Worldpay's valuation at $43 billion, accord-
ing to company statements at the time, which is more than
The FTC has been investigating since 2019 claims that twice its current valuation.
Mastercard and Visa block merchants from routing pay-
ments over other debit card networks. Debit networks, Studies show inflation’s impact
which require PIN authorization, are generally less expen- on consumers, merchants
sive clearing options. Most are owned by card brands, or
acquirers. Consumers are reining in spending as merchants amp up
promotions, according to June 2023 studies by J.D. Power,
Toast makes fee grab with new surcharge the U.S. Chamber of Commerce and Paysafe. The Personal
Consumption Expenditures (PCE) index, also published
Toast, the restaurant management software company that in June, shows inflation rose by 3.8 percent and core infla-
has been giving ISOs and their sales reps indigestion, is tion rose by 4.6 percent in the past year.
now raising the ire of restaurant owners and their custom-
ers. That's because those who place online orders of $10 Alfredo Ortiz, president and CEO of Job Creators Net-
or more with Toast clients will be charged an additional work, maintained that ongoing inflation has placed un-
99 cents—that's 99 cents over and above all other charges. due pressures on seniors and individuals living on fixed
incomes. "Inflation remains stubbornly high, punishing
According to reporting that first appeared in the Boston ordinary Americans and small businesses,” he said. “The
Globe, the new "order processing fee" was being tested prices of goods and services are rising at about twice the
with select Toast client restaurants and was slated to roll Federal Reserve's target rate.”
out nationwide beginning July 10. In a mockup of the
planned new Toast interface described by Nation's Restau-
rant News, the new fee does not appear as a separate line Also find us on Facebook,
item; instead, it is included as part of a line item called
"taxes and fees." LinkedIn & Twitter for the
most up-to-date stories,
Legal analysts praise New York's can’t miss events and newest
updated fintech regs
industry announcements.
Proposed changes to the New York State Department of
Financial Services Cybersecurity Regulation for fintechs,
known as 23 NYCRR Part 500, are set to go into effect later
this year, according to legal analysts and financial services
experts, most of whom agree the guidelines are innovative
and thorough.
https://www.facebook.com/TheGreenSheetInc
Amendments to New York's cybersecurity laws, published https://www.linkedin.com/company/the-green-sheet
in November 2022 and later revised in June 2023 following
an open comment period, cover stakeholder responsibili- https://twitter.com/The_Green_Sheet

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