• Thu. Jun 13th, 2024

Breaking News: Visa and Mastercard to Reduce Swipe Fees for US Merchants in Historic Settlement Deal

BySamantha Johnson

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

In recent news, Visa and Mastercard have reached a settlement with merchants to lower merchant fees. This agreement, which only applies to US merchants, is the result of a lawsuit filed in 2005 and is expected to reduce swipe fees paid by merchants when customers use Visa or Mastercard by $30 billion over a five-year period. The settlement would lower these fees by at least 0.04 percentage points for a minimum of three years.

Swipe fees typically cost merchants around 2% of the total transaction, but for premium rewards cards, it can go up to 4%. This settlement will significantly reduce these fees for merchants, which could lead to lower prices for consumers. However, the settlement must still receive approval from the US District Court for the Eastern District of New York before it can be finalized.

In related news, Discover and Capital One recently announced a merger that, upon approval by regulators and shareholders, will create the largest credit card company in the country. Following the announcement of the settlement, shares of Visa and Mastercard slightly increased. This story is still unfolding and will be updated as more information becomes available.

By Samantha Johnson

As a dedicated content writer at newsanguinely.com, I weave words into compelling stories that captivate and inform our readers. With a passion for storytelling and a keen eye for detail, I craft engaging articles that shed light on the latest news and trends. When I'm not typing away at my keyboard, you can find me exploring new ideas, researching diverse topics, and striving to deliver content that resonates with our audience. Join me on this journey as we uncover the stories that matter most.

Leave a Reply