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‘We Take Visa, Just Not That One’: Are Credit Card Rules About to Change?
The settlement would reduce average card swipe fees from 2.35% to 2.25%, end the honor-all-cards rule, and allow merchants to surcharge up to 3%, aiming to resolve a 20-year legal dispute.
- Visa and Mastercard proposed a revised settlement to resolve long-running swipe-fee litigation, attorneys announced after about 15 months of negotiations.
- After more than two decades of complaints, merchants have long argued Visa and Mastercard gouge them on interchange fees, and the March 2024 prior settlement was rejected, prompting further negotiations.
- Under the proposed terms, the deal would end the honor-all-cards rule by classifying cards as premium, standard, or commercial, allow surcharge flexibility up to 3%, and yield modest fee relief from 2.35% to 2.25%.
- A federal judge must still approve the deal, which would bind Visa and Mastercard for eight years, and despite legal hurdles, some 12 million merchant class members may accept the settlement.
- Plaintiffs' filings value the deal at $200 billion for merchants, but banks' reclassification power may force acceptance of higher-priced cards; trade groups called it `All window dressing and no substance,` while plaintiffs argued for substantial relief.
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26 Articles
26 Articles
‘We Take Visa, Just Not That One’: Are Credit Card Rules About to Change?
Visa and Mastercard have proposed a new settlement of a long-running legal battle over credit card “swipe fees” that could upend how you pay (and earn rewards) at checkout — or not.Previous attempts at settling this decades-long dispute have fizzled…
In a dispute between the card networks and a group of traders in the USA, conflict parties have now reached an agreement. The result shows how unequal the power relations are.
Coverage Details
Total News Sources26
Leaning Left3Leaning Right5Center7Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 20%
C 47%
R 33%
Factuality
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