Visa and Mastercard Reach Landmark Settlement Over Interchange Fees
Visa and Mastercard have agreed to a long-awaited settlement aimed at resolving disputes over interchange fees and merchant choice. The deal is expected to provide merchants with more flexibility in routing transactions and could reshape how card networks compete in the payments landscape. It follows years of regulatory pressure and litigation from merchants challenging the networks’ pricing power. Analysts see this as a major win for retail groups and a potential catalyst for lower transaction costs in the future. The move also signals a broader industry shift toward transparency and competitive fairness in digital payments.
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Credit card transaction processing flow by Stripe
Credit card transaction processing varies depending on where a transaction takes place and what type of card is used. For example, an online credit card transaction will be initiated in a different way than an in-person card transaction. Similarly, an in-person transaction will work differently if the credit card is stored in a digital wallet compared to an in-person transaction where the customer uses a physical card.
But even with these smaller variations, the overall credit card transaction process is mostly consistent across different types of transactions. Here’s a simplified overview of how the process works:
1. Initiation
The cardholder provides their credit card information to the business. For in-person transactions, this means swiping, inserting, or tapping their card. For online transactions, this means entering the card details manually or selecting a card from their stored payment methods.
2. Data transmission
The business’s POS system or payment gateway captures the transaction details and securely transmits this information to the credit card processor.
3. Authorization request
The credit card processor forwards the transaction data to the appropriate card network, which then routes the authorization request to the issuing bank.
Curated News
💳 Payments
Citi Expands Token Services for Euro and Multi-Currency Liquidity
Citi has announced the global expansion of its Citi Token Services, adding euro integration and 24/7 liquidity management across multiple currencies. This marks another step in Citi’s push toward blockchain-enabled treasury and cross-border payment innovations for institutional clients.
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Edenred Teams Up with WonderDays for Gift Card Distribution
Edenred Payment Solutions is partnering with WonderDays to streamline third-party gift card issuance and management. The collaboration enhances merchant access to corporate and consumer gifting solutions across multiple platforms.
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Paystand Strengthens Stablecoin Payments via Bitwage Acquisition
Paystand has acquired Bitwage to bolster its cross-border stablecoin payment infrastructure. The deal expands Paystand’s ability to facilitate faster, blockchain-based payroll and remittance services for businesses.
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🏦 Banking
DBS Integrates Generative AI in Banking Operations
Southeast Asia’s largest bank, DBS, has launched a generative AI chatbot to enhance internal workflows and customer engagement. The bank aims to use AI-driven automation to improve productivity and personalized service delivery.
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VPBank Modernizes Core Banking with Temenos
Vietnam’s VPBank has adopted Temenos’ cloud-native banking platform in partnership with Systems Limited and Red Hat OpenShift. The upgrade supports faster innovation, scalability, and improved digital customer experiences.
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ClearBank Founder Launches New Venture ‘Sporta’
Nick Ogden, founder of ClearBank, has unveiled his latest project, Sporta, targeting new opportunities in embedded finance. The platform aims to bridge sports engagement and financial technology, underscoring Ogden’s continued fintech entrepreneurship.
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🪙 Crypto
Bank of England Opens Consultation on Stablecoin Regulation
The Bank of England has initiated a consultation to establish a framework for regulating systemic stablecoins in the UK. The move seeks to ensure financial stability while enabling innovation in digital payments.
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Coinbase to Launch Token Offering Platform with Monad Sale
Coinbase is set to debut its new digital token offering platform, starting with the sale of the Monad token. This initiative represents Coinbase’s effort to broaden access to compliant token issuance and trading.
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BitMine Stock Rallies After $389M Ethereum Investment
BitMine shares surged after Tom Lee’s investment firm revealed a $389 million purchase in Ethereum. The move signals growing institutional confidence in crypto assets despite market volatility.
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Greenidge Settles New York Permit Dispute, Stock Spikes
Bitcoin miner Greenidge Generation has resolved its environmental permit dispute in New York, resulting in a sharp rise in its stock price. The settlement removes a key regulatory hurdle and stabilizes its U.S. mining operations.
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💼 Fintech
Ant International and Abdul Latif Partner to Digitize MSME Services
Ant International is teaming up with Saudi Arabia’s Abdul Latif Group to deliver digital financial tools for micro, small, and medium-sized enterprises. The partnership aims to expand financial inclusion and streamline MSME financing in the region.
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FintechOS and Finastra Simplify Client Onboarding
FintechOS has joined forces with Finastra to enable smoother digital and in-branch onboarding for banks and credit unions. The integration enhances customer journeys by automating KYC and compliance workflows.
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Ex-Google Engineering Head Joins Razorpay
Razorpay has hired a former Google engineering leader to strengthen its product innovation and scalability. The appointment reinforces the fintech’s commitment to advancing India’s digital payments infrastructure.
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MAS and Indonesia’s OJK Renew Fintech Partnership
Singapore’s Monetary Authority (MAS) and Indonesia’s OJK have renewed their fintech cooperation to promote cross-border innovation. The partnership focuses on joint sandboxes, digital ID, and open banking integration.
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Kapitale Secures $25M Credit Facility for US SMBs
Kapitale has obtained a $25 million credit line to expand funding options for small businesses in the U.S. The fintech plans to use the capital to scale its embedded lending and invoice financing solutions.
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📈 WealthTech
Schwab to Acquire Forge Global to Boost Private Markets Access
Charles Schwab is acquiring Forge Global in a deal aimed at expanding access to private market investments. The acquisition enhances Schwab’s alternative investment offerings and appeals to high-net-worth clients seeking diversification.
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FIS Launches New Asset Servicing Suite
FIS has introduced an advanced asset servicing management platform to streamline operational workflows. The new suite leverages automation to enhance transparency and efficiency for institutional clients.
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📜 Regulation
Bumper Gains FCA Authorization for Consumer Lending
UK-based Bumper has received authorization from the Financial Conduct Authority (FCA) to expand its consumer lending services. This milestone paves the way for broader lending solutions and enhanced compliance standards.
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💰 Other
Meta Profits from Fraudulent Ads Exposed
Reports reveal that Meta has earned substantial revenue from fraudulent advertisements running on its platforms. The findings reignite concerns about online ad verification and accountability in digital marketing.
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PensionBee Pushes for Faster Pension Transfers
PensionBee’s petition advocating a 10-day pension switch guarantee has reached over 5,000 signatures. The initiative highlights consumer demand for faster, more transparent pension transfer processes.
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