$30 Billion Visa-Mastercard Antitrust Settlement: Innovations to Combat Online Payment Fraud and Biometric Authentication Spark Merchant Concerns

Visa introduces new security measures against online fraud but a recent Visa-Mastercard settlement faces criticism from industry leaders for not addressing high card fees and risking rewards programs.

Buy Now, Pay Later & Biometric Security Aim to Combat Online Fraud

Visa is transforming how people buy things providing various convenient options like buy now, pay later and digital wallets such as Apple Pay. This not only makes shopping easier but also fights the increasing problem of online payment fraud, which happens more often than in-person purchases.

To combat the surge in online payment fraud, Visa is giving cardholders more control over their accounts and payment methods, making transactions more secure and efficient. Moreover, Visa aims to introduce biometric authentication for contactless payments, following the security measures of Apple’s credit card.

These innovative features, already available in Asia, are set to debut in the United States, pending individual bank decisions on implementation. However, the recent $30 billion antitrust settlement between Visa and Mastercard has sparked controversy, particularly among merchants, according to the report of The US Sun.

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(photo: Forbes)

Industry Leaders Voice Concerns Over Visa-Mastercard Settlement: High Card Fees and Rewards Programs Under Scrutiny

Stephanie Martz from the National Retail Federation says the settlement doesn’t fix the problem of high card fees that mostly help banks, and the savings for merchants are too small to address unfair industry practices. United Airlines CEO Scott Kirby worries that reducing card fees could lead to the demise of rewards programs crucial for customer loyalty which could harm both loyalty and the economy.

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