There is significant opposition to the settlement among the merchant community, with several large merchants and trade associations arguing the proposed changes do not fully address broader concerns regarding competition and the long-term trajectory of card acceptance costs.

The settlement’s implementation remains subject to final approval, which is likely to take several months. Appeals are expected following final approval, but we understand this is not likely to prevent the settlement from entering into force immediately following final approval.

What do merchants need to do?

Despite frustrations that it does not provide more relief for merchants, the MDL-1720 settlement does provide tools that could be helpful to merchants both in terms of direct monetary relief and the relaxation of some card network rules.

CMSPI estimates that around $5 billion of value will be available for the U.S. merchant community every year for five years, and the distribution for much of it appears to be at the discretion of the card networks. Considering that final approval is expected in the next few months, it is imperative that merchants act now or they risk missing out altogether.

CMSPI is working with merchants to develop their MDL-1720 settlement response strategies. Our unrivaled experience of delivering tangible cost optimization outcomes for merchants uniquely places us to ensure you don’t leave any value on the table here.

Join us for our merchant exclusive MDL-1720 webinar on Thursday June 18th at 12pm EST where CMSPI’s Robbie MacDiarmid and Callum Godwin, along with Constantine Cannon’s Owen Glist, will provide you with an overview of the MDL-1720 settlement and what you need to do next.

The CMSPI Perspective

In response to the news, CMSPI’s Chief Client Officer Elley Frost said “The settlement provides merchants with the opportunity to achieve $5 billion per year in credit card interchange fee relief, which will be welcome in a challenging economic climate. However, like anything in this complex industry it will not be straightforward and merchants will need to be proactive and act quickly”.

CMSPI Chief Economist Callum Godwin added: “This litigation has been painfully slow, but it now looks like we’re close to a resolution. This settlement is not a silver bullet that solves all the issues in the industry, but there are still some interesting levers here that merchants should take seriously”.

[Webinar] MDL-1720 Settlement Approved: What Happens Next for Merchants?

Join us for our merchant exclusive MDL-1720 webinar on Thursday June 18th at 12pm ET where CMSPI’s Robbie MacDiarmid and Callum Godwin, along with Constantine Cannon’s Owen Glist, will provide you with an overview of the MDL-1720 settlement and what you need to do next.