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Court approves Visa-Mastercard settlement
The deal would trim credit interchange fees and let merchants reject some premium cards, affecting about 12 million businesses.
- On Tuesday, U.S. District Judge Brian Cogan granted preliminary approval to a revised $38 billion settlement between Visa and Mastercard, covering more than 12 million merchants to resolve long-standing antitrust claims.
- The agreement arrives nearly two years after a previous court rejected a $30 billion proposal, aiming to conclude 21 years of litigation over accusations that Visa and Mastercard overcharged merchants for processing payments.
- Visa and Mastercard agreed to lower swipe fees by 0.1 percentage point for five years and modify the "Honor All Cards" rule, potentially allowing merchants to decline certain premium credit cards.
- Despite the settlement, the National Retail Federation and the National Association of Convenience Stores said the market remains "broken," with NACS General Counsel Doug Kantor predicting "many more objections" and a potential appeal to the 2nd Circuit.
- Economists project the changes could save merchants $38 billion by 2031 and provide $224 billion in overall benefits, as Mastercard looks forward to "moving closer to final closure of this matter" after the notice period.
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18 Articles
Court Grants Preliminary Approval of $38 Billion Visa, Mastercard ‘Swipe Fee’ Settlement
The U.S. District Court for the Eastern District of New York has granted preliminary approval of a $38 billion settlement between Visa, Mastercard and nearly 12 million merchants over “swiping fees” when processing credit cards. The litigation between the global credit card giants and merchants dates back to 2005, stemming from allegations that fees charged to merchants for accepting credit card payments were too high and that merchants were una…
·New York, United States
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The IndependentReposted by 
The Independent (US)
The Independent (US)Visa and Mastercard’s $38 billion swipe fee settlement gets preliminary approval
The ruling comes nearly two years after a different judge rejected a previous $30 billion proposal
·London, United Kingdom
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Coverage Details
Total News Sources18
Leaning Left3Leaning Right2Center3Last UpdatedBias Distribution38% Left, 37% Center
Bias Distribution
- 38% of the sources lean Left, 37% of the sources are Center
38% Left
L 38%
C 37%
R 25%
Factuality
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