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Visa and Mastercard strike deal to lower merchant fees | News Channel 3-12
- Visa and Mastercard announced Monday a settlement ending the `honor all cards` rule and temporarily lowering interchange fees, potentially concluding more than 20 years of litigation with U.S. merchants of all sizes.
- A class action that began in 2005 saw merchants sue over alleged antitrust violations tied to interchange rates, and under the networks' `honor all cards` rule, merchants couldn’t refuse higher-fee premium cards or add surcharges.
- The settlement would cap posted credit interchange rates for five years, keep standard consumer cards at 1.25% for eight years, and fund a $21 million merchant education program.
- U.S. District Judge Margo Brodie must approve the deal, which major merchant trade groups criticized as unsatisfactory and the National Association of Convenience Stores called `more smoke and mirrors`; the Electronic Payments Coalition supports it.
- Lawyers for the merchants value the pact at about $38 billion and say experts, including Joseph Stiglitz, estimate it could save over $200 billion, though critics warn Visa and Mastercard can still raise fees and merchants must accept more than 80% rewards cards.
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26 Articles
Visa, Mastercard Agree to Lower Swipe Fees in Latest Proposed Settlement
Visa and Mastercard announced an agreement on Monday with merchants that would end a 20-year legal battle over swipe fees in which businesses claimed the credit card giants violated U.S. antitrust laws. The settlement calls for Visa and Mastercard to lower swipe fees, which are added to each transaction, by 0.1 percent for the next five years. The fees are between 2 percent and 2.5 percent currently. Visa, based in San Francisco, notified the U.…
·New York, United States
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Visa, Mastercard reach $38B swipe fee settlement, draw opposition | Honolulu Star-Advertiser
NEW YORK >> Visa and Mastercard announced a revised $38 billion settlement with merchants who accused the card networks of charging too much to accept their credit cards, hoping to satisfy a judge who rejected a smaller accord as inadequate.
·Honolulu, United States
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Coverage Details
Total News Sources26
Leaning Left6Leaning Right2Center6Last UpdatedBias Distribution43% Left, 43% Center
Bias Distribution
- 43% of the sources lean Left, 43% of the sources are Center
43% Center
L 43%
C 43%
14%
Factuality
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