Visa, Mastercard End Dispute with Retailers Over Card Swipe Fees

Visa and MasterCard have reached a settlement in a 2005 antitrust lawsuit brought by U.S. merchants over credit card swipe fees. The lawsuit claimed that the fees charged to merchants for accepting Visa and MasterCard payments were excessively high and in violation of antitrust laws. As part of the settlement, both companies have agreed to cap the credit interchange fees until 2030. Additionally, they are required to negotiate these fees with merchant buying groups, which could lead to further limitations on the fees charged.

The implementation of the settlement terms is contingent upon the approval by the Eastern District Court of New York. If approved, the changes are expected to take effect between late 2024 and early 2025. This settlement could result in significant savings for consumers, potentially amounting to tens of billions of dollars. It's noted that more than 90% of the merchants involved in the settlement are small businesses, highlighting the potential impact on the broader merchant community. The court's final decision on the settlement is still pending.