• Fri. Jun 14th, 2024

Revolutionary Antitrust Settlement: Visa and Mastercard Reduce Fees for Merchants by $30 Billion in Five Years.

BySamantha Jones

Mar 27, 2024
Visa and Mastercard Reach $30 Billion Settlement to Reduce Merchant Fees

Visa and Mastercard, two of the largest credit card networks, have reached a settlement with merchants to reduce fees for transactions. This agreement follows an antitrust case initiated by merchants against the credit card giants in 2005. The settlement is projected to decrease swipe fees that merchants pay for Visa or Mastercard purchases by $30 billion over a five-year period.

The case centered on lowering swipe fees that merchants incur during credit card transactions. Normally, merchants pay about 2% of the total transaction amount, with costs possibly rising to 4% for certain premium rewards cards. The settlement aims to reduce these fees by at least 0.04 percentage points for a minimum of three years. Despite this reduction, Visa and Mastercard cardholders will not see changes in their rewards programs, according to statements made by the companies.

In response to the settlement, credit card companies like Visa and Mastercard confirmed that rewards programs and credit access will remain the same for cardholders. Furthermore, recent news of a potential merger between Discover and Capital One signals ongoing changes in the credit card industry. Visa and Mastercard stock prices experienced slight increases following the announcement of the settlement, indicating investor confidence in the deal.

However, it is important to note that the settlement has not been finalized and is awaiting approval from the US District Court for the Eastern District of New York. The case could also be subject to appeal, extending an already long legal process. This story is still developing, and updates will be provided as more information becomes available.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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