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Visa and Mastercard agree to slash fees in $30B landmark settlement

Banking And Finance,Business,Economy And Jobs,Small Business

From the Right

Visa and Mastercard on Tuesday reached a landmark $30 billion settlement that will limit credit and debit card fees for merchants, with some savings likely to be passed on to consumers.

The antitrust settlement is one of the largest in US history, and upon court approval would resolve claims in litigation that began in 2005.

Merchants have accused Visa and Mastercard of charging inflated swipe fees, or interchange fees, when shoppers use their credit or debit cards.

Sellers were blocked from passing on the extra fees to shoppers using Visa and Mastercard — as opposed to those charging their purchases to American Express.

There have also been “anti-steering” rules in place that bar directing Visa and Mastercard customers toward cheaper means of payment.

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