Visa and Mastercard Agree to Cap Credit Card Transaction Fees
Summary from the AllSides News Team
Visa and MasterCard announced a settlement in a major antitrust case on Tuesday, agreeing to cap credit card processing fees in a move that could save U.S. businesses nearly $30 billion.
The Details: Credit card processing fees, also called “swipe fees,” or “transaction fees,” are fees paid to enable transactions. Merchants currently pay about 1.5% to 3% per credit card transaction, but the new agreement includes a 0.04-percentage point decrease held steady for the next five years. Businesses usually pass on the cost of the fees to consumers.
How the Media Covered It: Coverage was common in business outlets Tuesday morning, with Fox Business (Lean Right bias) as an apparent notable exception. Some headlines used the word “Landmark” to frame the settlement as especially significant.
Featured Coverage of this Story
From the Center
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...
From the Right
Visa and Mastercard agree to slash fees in $30B landmark settlement
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...
From the Left
Visa, Mastercard agree to cap credit card processing fees
Visa and Mastercard have agreed to cut and cap credit card processing fees as a part of a major settlement with merchants after decades of litigation.
Why it matters: U.S. businesses are expected to save at least $29.8 billion in the five-year deal, according to attorneys who represented the plaintiffs in the class-action settlement.
Merchants will have more flexibility to adjust how much they charge consumers for goods sold via credit card.
What they're saying: "The settlement will reduce credit interchange rates for U.S. merchants, comprised largely of small businesses," Visa said in a...
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