Summary
Visa and Mastercard are set to lower some of their fees charged to retailers in the U.S. as part of a proposed $38 billion settlement. This deal aims to resolve a 20-year legal dispute over alleged antitrust violations involving these companies and banks. The settlement needs court approval, and it could impact how much merchants pay in fees and the rewards consumers get from using credit cards.
Key Facts
- Visa and Mastercard have reached a $38 billion settlement proposal to resolve antitrust claims.
- The settlement includes lowering swipe fees by 0.1 percentage point for five years.
- Standard consumer rates would be reduced by over 25% and capped at 1.25% for eight years.
- Merchants will have more flexibility to select which cards to accept.
- Merchants can impose new surcharges on card payments.
- The settlement could save merchants an estimated $200 billion over its duration.
- Previous settlement attempts, such as a $30 billion plan, were rejected.
- The settlement could potentially reduce credit card rewards since rewards come from interchange fees.
