"The accord, which requires court approval, calls for Visa and Mastercard to lower swipe fees, which are now typically around two per cent to 2.5 per cent, by 0.1 percentage points for five years. Merchants would be allowed to choose whether to accept U.S. cards in specific categories, including commercial cards, premium consumer cards including many popular "rewards" cards and standard consumer cards. Standard consumer rates would be capped at 1.25 per cent until the agreement expires."
"Also known as interchange fees, swipe fees totalled $111.2 billion in the United States in 2024, up from $100.8 billion in 2023 and quadruple the level in 2009, according to the National Retail Federation, the largest U.S. retail trade group. Visa said the settlement provides merchants "of all sizes" with "meaningful relief, more flexibility and options to control how they accept payments from their customers.""
Visa and Mastercard reached a revised settlement with merchants accusing the card networks and banks of antitrust violations over swipe fees. The agreement would lower typical swipe fees by 0.1 percentage point for five years and let merchants choose whether to accept certain U.S. cards, including commercial, premium rewards and standard consumer cards. Standard consumer rates would be capped at 1.25 percent until the agreement expires. Merchants gain more options to impose surcharges. Swipe fees totaled $111.2 billion in the United States in 2024. Visa and Mastercard said the settlement offers flexibility and lower costs; neither company admitted wrongdoing.
Read at www.cbc.ca
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