Boston, February 9, 2012 – A new report from Aite Group discusses the potential implications of recent U.S. legislation and court rulings on the U.S. payments market. Based on Aite Group interviews with 20 U.S. financial services card-issuing industry executives at the November 2011 ATM, Debit & Prepaid Forum, the report examines market events that are affecting the overall influence of the four major networks on issuers and merchants.

Over the last two years, U.S. government legislation and court decisions have changed the balance of power among the four major network payment brands: Visa, MasterCard, American Express, and Discover. The Durbin amendment shifted transaction-routing control to merchants, and U.S. District Court antitrust rulings are affecting merchants, who can now set their own requirements for accepting cards at the point of sale. Meanwhile, Visa and MasterCard continue to struggle for brand prominence and transaction volumes, and are moving forward with ways to reduce fraud exposure on signature transactions and to facilitate EMV acceptance and adoption. Aite Group’s survey population sees big changes in store for payments networks. Among these is increased competition—55% of survey respondents believe there is a “good possibility” that issuers will increase network competition by using two different networks; one for signature debit and one for credit.

“As the influence of the networks shifts, it will create new opportunities in the market for issuers and merchants alike,” says Madeline K. Aufseeser, senior analyst with Aite Group and author of this report.

This 17-page Impact Note contains 11 figures. Clients of Aite Group’s Retail Banking service can download the report .