Page 5 - GS230801

Letter from the editor

iven the long-running, contentious dis-
agreements over interchange among
retailers, card brands, merchant acquirers,
G bank associations, legislators and other
interested parties, it's hard to believe that interchange
hasn't always been controversial. "After all," the lead
article in this issue notes, "there is a real cost to card-
issuing banks when they fund a cardholder purchase,
making the transaction an unsecured extension of
credit that benefits the merchant." As the industry has
grown in complexity and merchant categories have
morphed and proliferated, along with their associ-
ated fees, retailer dissatisfaction has grown. And
now, Senator Dick Durbin, D-Ill., is aiming to stick a
legislative wrench in the works, much like he did in
2010 when he tacked on an amendment to the Wall
Street Reform and Consumer Protection Act. The
amendment capped debit fees, theorizing—wrongly,
it turns out—that merchants would pass their savings
on to consumers and thus stimulate the economy.

Continuing The Green Sheet's 40th anniversary retro-
spective series, our lead feature puts the main points
of contention in historical context, along with various
remedies and solutions. A certain amount of tension
will always arise in business, so periodic deja vu may
be our destiny. However, given the number of highly
skilled communicators we have in the payments in-
dustry, common sense may ultimately prevail.

When it comes to skilled communication, one aspect
can't be ignored during in-person or video meetings:
body language. One of our contributors explains how
to incorporate mirroring into your body language
for maximum effect. Other contributors explain how
service providers can help merchants be proactive
in addressing fraud and chargeback risks to avoid
escalating attacks and costly fees; how President
Biden's Executive Order Promoting Competition in
the American Economy (EO 14036) aims to prevent
further consolidation in the banking and technology
industries; and why the Visa Integrity Risk Program's
requirements are daunting and will preclude acquir-
ers from supporting certain merchants.

Highlighted news stories cover FedNow's readiness
for launch, research indicating omnichannel com-
merce and retailer apps have staying power, Block's
lawsuit against Visa and Mastercard alleging they
have been overcharging its Square business unit, a
new regulatory framework aimed at standardizing
approaches to crypto-asset activities worldwide, and
research affirming a thriving experience economy
despite cost-of-living increases. You'll find all of the
above herein, along with new company and product
profiles, and updates on recent industry milestones.
Please send your comments to greensheet@greensheet.
com and press releases to press@greensheet.com.

5