Visa and Mastercard $38 billion swipe fee settlement gets preliminary approval after 20-year legal battle
The Economic Times
A US judge has preliminarily approved a $38 billion settlement between Visa and Mastercard and merchants to reduce credit card processing fees.Summary
A US district judge has granted preliminary approval to a $38 billion settlement involving Visa and Mastercard and millions of merchants, resolving a legal battle that began in 2005. The agreement aims to reduce swipe fees by 0.1 percentage point for five years and cap standard consumer card fees at 1.25% for eight years. A key change would remove the "honor all cards" rule, potentially allowing merchants to refuse higher-cost rewards cards. However, the National Retail Federation expressed disappointment, arguing the settlement does not provide meaningful relief. The impact on consumers remains uncertain.
(Sourceļ¼The Economic Times)