Mandate for least-cost routing proposed to end hidden costs in contactless electronic payments, benefiting small businesses.
A mandate for least-cost routing could help end banks' 'tap and go' rort, where consumers and small businesses pay hidden costs in contactless electronic payments. Merchants pay $1bn a year in higher fees and charges, with small businesses bearing the greatest share. On average, these fees cost small businesses twice as much as large businesses to process the same transactions, highlighting market power advantages.
March 17, 2024
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