Revelations 18:9-11 “The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning, 10 standing at a distance for fear of her torment, saying, ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’ 11 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore
Important Takeaways:
- ASEAN Finance Ministers and Central Banks Consider Dropping US Dollar, Euro and Yen, Indonesia Calls for Phasing Out Visa and Mastercard
- The meeting discussed efforts to reduce dependence on major currencies through the Local Currency Transaction (LCT) scheme. This is an extension of the previous Local Currency Settlement (LCS) scheme that has already begun to be implemented between ASEAN members.
- This means that an ASEAN cross-border digital payment system would be expanded further and allow ASEAN states to use local currencies for trade. An agreement on such cooperation was reached between Indonesia, Malaysia, Singapore, the Philippines, and Thailand in November 2022. This follows from Indonesia’s banking regulator, stating on March 27 that the Bank of Indonesia is preparing to introduce its own domestic payment system.
- Indonesian President Joko Widodo has urged regional administrations to start using credit cards issued by local banks and gradually stop using foreign payment systems. He argued that Indonesia needed to shield itself from geopolitical disruptions, citing the sanctions targeting Russia’s financial sector from the US, EU, and their allies over the conflict in Ukraine.
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Revelations 18:9-11 “The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning, 10 standing at a distance for fear of her torment, saying, ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’ 11 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore
Important Takeaways:
- Top Asian economy urges citizens to abandon Western payment systems
- The leader of Indonesia says the country must reduce its dependence on foreign payment systems, to negate potentially disastrous economic consequences should the country ever find itself in the crosshairs of Western sanctions.
- “Be very careful. We must remember the sanctions imposed by the US on Russia. Visa and Mastercard could be a problem,” Widodo said on Wednesday at a gathering that promoted the use of Indonesian-made products and services.
- The president urged the public sector to adopt domestic systems, stressing that eventually “everyone should be able to use” locally-issued bank cards so that “we can be independent.”
- “If we use our own platforms, and everybody is using them, from ministries and local administrations to municipal governments, then we can be more secure,” Widodo said
- However, in order to compete with Visa and Mastercard, any domestic alternative must be accepted internationally, experts cited by the Post said
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By Andrew MacAskill
LONDON (Reuters) – Some 46 million people in Britain could potentially benefit from a legal case brought against Mastercard <MA.N> demanding 14 billion pounds ($19 billion) in damages for allegedly charging excessive fees, according to court documents filed in London.
The case brought by a former chief financial services ombudsman alleges the payments company charged unlawfully high fees to stores when shoppers swiped their debit or credit cards and these were passed on to consumers in higher prices.
Mastercard is alleged to have done this for 16 years between 1992 and 2008, in more than 600 pages of documents filed at the Competition Appeal Tribunal on Thursday.”This was almost an invisible tax,” Walter Merricks, who is bringing the case, told the BBC. “Mastercard has behaved disgracefully in this. They have not had the reasonableness to accept that what this was doing was damaging UK consumers.”
Mastercard said in a statement it denied any wrongdoing.”We continue to firmly disagree with the basis of this claim and we intend to oppose it vigorously,” the world’s second-largest payments network said.
The lawsuit comes after the European Union’s antitrust regulator found in 2014 Mastercard’s fees to store owners to process international payments within the EU were excessive.Law firm Quinn Emanuel said the lawsuit was the largest damages claim in British history and would be brought under a law meaning consumers would automatically be claimants unless they opt out. Any person living in Britain who used a credit card, cash or cheques and was over 16 years old in the period covered by the lawsuit will automatically be part of the claim.If the 14 billion pound claim was shared equally between the number of eligible claimants, each person could receive more than 300 pounds each, according to a Reuters’ calculation.A lawyer working on the case said Mastercard charged shops fees in excess of 1 percent for card use on international transactions between 1992 and 2008.Although the EU’s anti-trust regulator only ruled Mastercard’s international fees were illegal, this impacted British consumers as it was the default fee used in Britain.
Two years ago, the European Union capped the fees retailers pay at 0.2 percent for debit cards and 0.3 percent for credit cards. Merricks in a statement said the case is a watershed moment for consumer compensation in Britain.Merricks was head of Britain’s financial services ombudsmen for ten years until 2009, helping to settle disputes between consumers and financial services companies. Britain’s banks have been caught in a range of misspelling cases in the last five years. They have paid 24 billion pounds in compensation for mis-selling loan payment insurance, making it Britain’s costliest scandal in financial services.Consumers no longer living in Britain, but who lived in the country between 1992 and 2008, can opt in to the collective claim against Mastercard.Any hearing on the case is not expected until early 2018, unless MasterCard settle it out of court.
($1 = 0.7523 pounds)
(Editing by Mark Potter and Alexander Smith)
