U.S. merchants face the highest card payment acceptance costs in industrialized nations, with businesses paying $224 billion in 2023, according to a CMSPI report. The report, drawing on data from sources like Worldpay and the Federal Reserve, offers insight into the global payment landscape, highlighting growing ecommerce, mobile payments, and the high cost of accepting card payments. Most of this, $143 billion, went toward interchange fees. Ecommerce growth significantly contributed to the rising fees, with online sales expanding from 9 percent in 2019 to 15.4 percent in 2023.
Globally, mobile devices facilitated 54 percent of ecommerce transactions in 2022. Meanwhile, payment preferences vary across the world: cash still dominates in countries like Mexico and Indonesia, though it has dramatically declined in India. In contrast, Europe shows significant differences in cash usage across countries, and the United States remains highly reliant on credit cards, with 82 percent of adults possessing at least one.
The U.S. Faster Payments Council released new resources to help financial institutions integrate faster payments. Sponsored by Mastercard, two reports from the FPC's Cross-Border Payments Work Group focus on ISO 20022, a global financial messaging standard. The first report, How to ISO 20022, provides detailed guidance on integrating the standard, while the second, Distinguishing Advantages in the Format & Structure of ISO 20022 for Instant Payment Adoption, highlights the benefits of its richer data content and operational efficiency.
The FPC also released a guideline, Operational Considerations for Receiving Instant Payments, developed by the Operational Considerations Work Group, which addresses challenges related to real-time payments, such as liquidity management and fraud prevention. These initiatives underline the FPC's commitment to fostering secure, inclusive and efficient payments in the United States to help FIs prepare for the future of real-time and cross-border transactions.
The Federal Trade Commission is distributing $2.6 million in refunds via PayPal to victims of a mobile cash advance scam run by FloatMe. The company deceived consumers with promises of "free money" but often failed to deliver on these promises, typically advancing only $20 instead of the advertised $50. The FTC found that FloatMe also misled consumers about cancellation options and charged additional hidden fees. Some consumers were deemed ineligible for the service due to undisclosed income thresholds, despite paying subscription fees.
The FTC charged FloatMe with violating several laws, including the Restore Online Shoppers' Confidence Act. The 449,344 affected consumers have 30 days to redeem their PayPal payments. The agency's action against FloatMe underscores its commitment to protecting consumers from deceptive practices and ensuring refunds reach those affected quickly and efficiently.
The U.S. Department of Justice is suing Visa, accusing the company of illegally maintaining a monopoly over debit card network markets. The lawsuit alleges that Visa uses anti-competitive agreements with merchants and banks to stifle competition, forcing debit transactions onto its network at higher costs.
These practices, which include imposing "disloyalty penalties" and preventing competitors from entering the market, are seen as violations of the Sherman Antitrust Act. The DOJ claims Visa's dominance in the debit market allows it to extract excessive fees, which are passed on to consumers through higher prices or reduced service quality.
Attorney General Merrick Garland emphasized that the DOJ's action is aimed at protecting competition and preventing Visa from abusing its market power. Visa has faced previous scrutiny, including a 2020 lawsuit that halted its acquisition of fintech company Plaid. 
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