Claim Your Share of the $5.5 Billion Settlement with Lumino
5 Minutes
Claim Your Share of the $5.5 Billion Settlement with Lumino
In the wake of landmark legal battles against major card brands, an enormous opportunity has emerged for small and medium-sized businesses (SMBs) to reclaim a portion of a staggering $5.5 billion settlement. Here at Lumino, we're dedicated to guiding our clients through these developments and helping them optimize their payment processing systems in light of the new rulings. Let's dive into the key insights from recent litigation and how it can significantly benefit your business.
Understanding the Landscape of Payment Processing Litigation
Recent lawsuits, including those by the Department of Justice against card brands like Visa and Mastercard, have reshaped the payment processing landscape. These legal battles focused on anti-competitive practices, such as price fixing and restrictions that prevented merchants from steering customers towards less expensive payment methods.
What This Means for Your Business
Financial Compensation: If your business accepted Visa or Mastercard transactions between January 1, 2004, and January 25, 2019, you might be eligible for compensation due to the imposed unfair interchange fees. We at Lumino can assist you in navigating the claim process to ensure you receive your fair share of the settlement.
Reduced Costs: The rulings from these cases now allow businesses more freedom to incentivize customers to use cost-effective payment methods. This could mean significant savings in monthly processing fees, directly impacting your bottom line.
Leverage New Rules for Economic Advantage
The Federal Trade Commission (FTC) has rolled out new rules that prevent payment card networks from restricting discounts or incentives for using preferred payment methods. This means you can now offer discounts to customers who pay by cash or debit card, potentially reducing the fees associated with credit card transactions.
Implementing Dual Pricing
At Lumino, we recommend taking advantage of the dual pricing model. This strategy involves setting different pricing for cash and card payments, which not only complies with the new rules but also helps mitigate the high costs associated with card fees. Although implementation can seem daunting, Lumino provides the expertise and tools necessary to integrate these changes smoothly and compliantly into your business operations.
Risks and Compliance
It's crucial to understand that despite these opportunities, there are risks involved in navigating these new waters. Violations of card brand rules can result in hefty fines. Therefore, it is essential to approach these changes with a well-informed strategy, ideally with guidance from payment processing experts like those at Lumino. We ensure that your business remains compliant while maximizing the benefits of these new regulations.
Future Outlook and Continuing Support
With another recent settlement by Visa and Mastercard valued at $30 billion, the implications for SMBs are profound. Not only will there be an opportunity to claim further compensation, but the card brands have also agreed to freeze price increases for the next five years and allow more flexibility for merchants using alternative payment programs.
Conclusion
As your dedicated payment processing partner, Lumino is here to help you navigate through these changes, claim your deserved settlements, and adjust your payment strategies to enhance profitability and compliance. Remember, taking action now with the right partner can transform these legal changes into financial gains for your business.
For personalized guidance and to learn more about how you can benefit from these developments, connect with us today. Your financial growth and stability are our top priorities.
