Visa, Mastercard Settle for $30 Billion Over Swipe Fees

The landmark settlement aims to reduce transaction costs for U.S. merchants, pending court approval.

Visa and Mastercard have agreed to a landmark $30 billion settlement to reduce and cap credit card swipe fees, potentially saving U.S. merchants tens of billions of dollars over the next five years.
The settlement resolves a nearly two-decade-long antitrust litigation, with the reduced swipe fees expected to benefit both merchants and consumers by lowering transaction costs.
Merchants will now have more flexibility in steering customers towards lower-cost payment options and negotiating interchange fees directly with Visa and Mastercard.
The agreement is subject to court approval and is expected to take effect in late 2024 or early 2025, marking a significant shift in the credit card payment landscape.
Critics argue that while the settlement offers some relief, it may not sufficiently address the broader issue of high swipe fees and the need for a more competitive payment processing market.