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Visa and Mastercard agree to $30 billion settlement that will lower merchant fees

·1 min

Two major credit card networks, together with the banks that issue cards, have agreed to settle a long-standing antitrust case brought by merchants. The settlement aims to reduce swipe fees paid by merchants when customers use Visa or Mastercard. While this settlement only applies to US merchants, it is still subject to court approval and potential appeals. Swipe fees, which usually cost merchants up to 2% of a transaction, could be reduced under the settlement, potentially benefiting consumers. However, the settlement also allows merchants to impose surcharges on certain rewards cards. The settlement would maintain swipe fee rates for five years. The settlement does not impact the rewards or credit access for cardholders. The settlement’s impact on credit card rewards and small banks is a concern according to one analyst. Visa and Mastercard stocks rose slightly following the announcement.