Credit Card Industry Faces Historic Overhaul as Visa and Mastercard Agree to Lower Swipe Fees for US Merchants

By Eleanor Harrison Mar27,2024
Visa and Mastercard Reach $30 Billion Settlement to Reduce Merchant Fees

In a landmark settlement, Visa and Mastercard have agreed to reduce merchant fees for US merchants. The case has been ongoing for decades and involves not only the credit card networks but also the banks that issue cards with them. The settlement is expected to save merchants $30 billion over a five-year period by reducing swipe fees paid when customers use Visa or Mastercard.

Swipe fees typically cost merchants around 2% of the total transaction, but for premium rewards cards, it can go up to 4%. Under the settlement, these fees will be lowered by at least 0.04 percentage points for a minimum of three years. Visa and Mastercard have assured that the rewards received by cardholders will not be impacted by the settlement, and Americans’ access to credit will not be restricted as a result either.

Mastercard spokesman Seth Eisen confirmed that the settlement would not affect rewards or credit access for cardholders. In other news, Discover and Capital One have recently announced a merger that, upon approval by regulators and shareholders, will create the largest credit card company in the country. Following the announcement of the settlement, shares of Visa and Mastercard slightly increased. This story is still unfolding and will be updated as more information becomes available.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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