The Federal Trade Commission has ordered Mastercard to cease business practices it claims are designed to bar vendors from routing payments through third parties.
"The Federal Trade Commission is ordering an end to illegal business tactics that Mastercard has been using to force merchants to route debit card payments through its payment network, and is requiring Mastercard to stop blocking the use of competing debit payment networks," the FTC said in a Friday statement.implementation of payment tokenization — the process through which payment networks replace sensitive cardholder financial information with alternative, less sensitive IDs.
These numerical IDs can be held by third party services such as virtual wallets and payment applications. In this photo illustration there are three Mastercard Credit Cards. The branding and marketing logo of a financial company. Business related conceptual image.tokenization process, forcing third parties to work with the company to utilize the cards.
A Mastercard spokesperson confirmed the agreement with the FTC, telling FOX Business the company believes its practices have been lawful, but that changes will be made to comply with the FTC's demands. "We believe that our existing routing practices are lawful and have always provided choice to merchants. We will continue the work to update our processes to comply with the consent order and provide even greater choice." the company told FOX Business in an exclusive statement.
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