U.S. orders Mastercard to stop blocking competing payment networks

Mastercard Inc. credit cards are displayed in this picture illustration taken December 8, 2017. REUTERS/Benoit Tessier/Illustration//File Photo

Dec 23 (Reuters) – The Biden administration on Friday said it was ordering Mastercard Inc (MA.N) to stop blocking the use of competing networks to process debit payments.

Under a proposed order, Mastercard would have to start providing competing payment networks with the customer account information they need to process payments, the Federal Trade Commission, which enforces competition laws, said in a statement.

“This is a victory for consumers and the merchants who rely on debit card payments to operate their businesses,” Holly Vedova, director of the FTC’s Bureau of Competition, said in a statement.

In a statement, Mastercard said it had reached an agreement with the commission on the routing of certain debit card transations, adding that it believes its current practices are "lawful" and that it provides options to merchants.

"We will continue the work to update our processes to comply with the consent order and provide even greater choice," the company said.

Read Next / Editor's Picks

• TechnologycategoryIsrael regulator awards licence to investors to set up new digital bank, article with image11:37 AM UTC
• VideoEXPLAINERExplainer: How did Bankman-Fried secure $250 mln bail?, article with videoDecember 23, 2022
• FinancecategoryFormer ICICI Bank CEO Chanda Kochhar arrested in loan fraud case -source, article with imageDecember 23, 2022
• MarketscategoryECB must be ready to take the heat and raise rates more, Schnabel says, article with imageDecember 24, 2022

Source reuters.com