MasterCard Settles Litigation with Comm Comm

MasterCard Settles Litigation with Commerce Commission

Auckland, New Zealand, August 24, 2009 – MasterCard said today that it had reached an agreement to settle litigation brought against it by the Commerce Commission.

Following this agreement, the company said, New Zealand consumers can be confident that they can continue to use their MasterCard cards wherever they see the MasterCard logo displayed.

Under the terms of the settlement MasterCard will modify some of its rules as they apply to New Zealand. These rule changes and clarifications include:

• MasterCard will set maximum interchange rates for New Zealand transactions, and post them on its website. Issuers will be permitted to set their own interchange fees up to the maximum rates;

• Issuers and acquirers in New Zealand will continue to be able to bilaterally negotiate interchange rates that apply to New Zealand domestic transactions, although in the future these will be subject to the maximums set by MasterCard;

• Non-financial institutions will be able to apply to MasterCard to issue credit cards or offer merchant services, subject to certain requirements, such as the ability to manage risk, operational readiness, and capital strength;

• MasterCard will not prohibit merchants from imposing a surcharge on their customers when they choose to use their MasterCard cards to make purchases in New Zealand. Merchants will be required to inform customers of the added charge at the point of sale, and the surcharge must bear a reasonable relationship to the merchant’s cost of accepting MasterCard cards.

In agreeing to this settlement, MasterCard does not admit any wrongdoing, and will pay no penalties.

A copy of the public version of the settlement agreement is available from the Commerce Commission’s website.

ENDS

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