Visa and Mastercard agree $30bn settlement over US transaction fees

Visa and Mastercard have agreed to cut their US transaction fees in a landmark settlement that merchants say will save them $30bn over five years.

The deal, announced on Tuesday, will require the payments companies to lower the so-called swipe fees they charge sellers over the next five years.

It will also allow merchants to charge different prices to consumers based on which credit card they use.

The settlement does not include a requirement for merchants to pass on the savings from lower fees to consumers.

The agreement concludes a long-running case brought by merchants, which alleged the credit card companies inflated payment processing fees.