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Insights and Expertise

If the settlement is ultimately
rejected, it would represent a
major setback for retailers who
have tirelessly fought to reduce
interchange fees.

• Payment processors: Companies that handle the
technical aspects of payment transactions may
find themselves in a complex environment where
regulatory and legal uncertainties impact their
operations and relationships with both merchants
and card networks.
• Issuing banks: Banks that issue credit and debit
cards stand to maintain their significant revenue
streams from interchange fees. However, they may
also face increased scrutiny and pressure from
regulators and merchants alike.
• Consumers: While consumers might initially see
fewer direct fees at the point of sale, the long-term
impact could include higher prices for goods and
services as merchants attempt to recoup their costs.
Additionally, consumers may miss out on potential
savings that could have resulted from merchants
steering them toward lower-cost payment options.

The likely rejection of the $30 billion settlement
between Visa, Mastercard and retailers underscores
the complexity and contentiousness of interchange
fee litigation. As the electronic payments industry
continues to evolve, stakeholders must navigate a
landscape fraught with legal, financial and operational
challenges.

The ongoing struggle between merchants seeking
relief from high interchange fees and credit card
networks aiming to protect their revenue streams will
shape the future of payment processing and consumer
transactions for years to come.

Note: This article is for informational purposes
only and does not constitute legal advice. Readers
are encouraged to seek professional legal counsel
regarding their specific circumstances by contacting
an attorney at Global Legal Law Firm.
An alumnus of the University of San Diego, School of Law,
Arzumanyan has a proven track record of drafting, reviewing, revis-
ing and negotiating an extensive array of commercial contracts,
including vendor, nondisclosure, employment, software-as-a-ser-
vice, consulting and marketing agreements. Leveraging his prior
in-house counsel background, Arzumanyan has also carved out a
unique niche within the electronic payments industry as his transac-
tional expertise now encompasses merchant processing, merchant
banking and sponsorship, referral, independent sales office, and
other related agency agreements. Contact him at larzumanyan@
glrlegal.com.

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