Witherspoon Examines Strategies for Merchants Facing Rising Payment Processing Costs in Law360

10.31.2025

Stinson LLP Partner Tom Witherspoon authored an article for Law360 titled "Strategies For Merchants As Payment Processing Costs Rise," where he explored how merchants are responding to growing payment processing expenses through regulation, litigation and legislative efforts.

In the article, Witherspoon explains how the current inflation and tariff environment, along with increasing preference for card-based transactions, has contributed to higher processing costs that continue to pressure retail merchants. He discusses recent developments such as the GENIUS Act, the rise of automated clearinghouse (ACH) payments, and the growing potential of open banking as possible avenues for relief.

"Open banking allows merchants to review a customer’s bank account balance and transaction information directly from the customer’s bank before accepting ACH as a payment method," writes Witherspoon. "The open banking service, paired with an instant payment method, could give merchants cheaper, faster authorization and settlement than cards."

Witherspoon also points out that as payment systems evolve, merchants and financial institutions will face new regulatory and operational considerations. He underscores the importance of staying informed on emerging payment technologies and understanding how evolving rules may affect compliance and cost-management strategies.

Witherspoon focuses his practice on payments, consumer financial products and other bank and financial regulatory matters with an emphasis on compliance, financial transactional and litigation matters.

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