Visa and Mastercard’s $38 billion swipe fee settlement gets US judge’s preliminary approval

US District Judge Brian Cogan in Brooklyn granted preliminary approval to a revised $38 billion settlement between Visa, Mastercard, and more than 12 million merchants, calling it "fair, reasonable, and adequate." The ruling comes after a previous $30 billion proposal was rejected in 2024, and final approval is still expected to follow. The litigation dates to 2005, when merchants accused Visa, Mastercard, and banks of violating US antitrust laws through interchange, or "swipe," fees. The settlement would reduce swipe fees by 0.1 percentage point for five years, cap standard consumer card rates at no more than 1.25% for eight years, give merchants more ability to impose surcharges, and let them choose whether to accept certain card categories. That last provision could effectively end the longstanding "Honor All Cards" rule requiring merchants to accept all Visa and Mastercard cards or none. Visa and Mastercard welcomed the decision, while opponents including the National Retail Federation, the National Association of Convenience Stores, Walmart, and the Merchants Payments Coalition argue the deal leaves the card market "broken" and does not go far enough on rewards-card costs or issuer-level controls. Supporters, including the Electronic Payments Coalition and experts Joseph Stiglitz and Keith Leffler, say the changes could save merchants $38 billion by 2031 and generate broader consumer benefits.

(Source：The Independent)