(28 August 2009 – New Zealand) MasterCard International has settled with the New Zealand Commerce Commission in a case alleging that MasterCard scheme rules contravened anti competitive sections of the New Zealand Commerce Act.The nature of the MasterCard settlement is virtually the same as the agreement struck between Visa and the Commerce Commission on 12 August.
The Commission has agreed to drop all charges against MasterCard, with the latter agreeing to make a number of changes to its scheme rules.
MasterCard rules will be changed to allow acquirers and issuers to individually negotiate interchange fees up to the maximum amounts set by MasterCard. These maximum interchange fees will also be disclosed publicly by MasterCard.
New Zealand merchants will also have the choice to surcharge MasterCard credit cards if they wish to offset the costs of these payments or divert customers to other payment methods. In addition, MasterCard rules will now permit approved non-bank companies to join its network and provide acquiring services to the New Zealand merchant community.
Commerce Commission Chair Dr Mark Berry said that the settlement may be expected to benefit consumers by driving down interchange fees and facilitating merchant steering towards lower cost payment methods.
Under the terms of the settlement, MasterCard has agreed to put in NZ$3 million towards the Commission’s legal costs to date.