Details
Written by: RJ
Updated 6/25/24 – Federal judge has blocked this settlement. No details now, both networks have until 6/28/24 to respond.
Visa and Mastercard have agreed to a settle with retailers over credit card processing fees. The terms are said to be worth $30B in savings to stores over the next 5 years.
- Lower swipe fees by at least 0.04 percentage points for each of the next three years.
- Ensure an average rate that is 7 basis points below the current average for five years.
- Cap rates for five years
- Remove anti-steering provisions
- Stores have more room to offer discounts or add extra charges on cards with higher processing fees
- Both networks admit no wrongdoing
Reported by Reuters
Thoughts
Interesting part is allowing stores more room to add additional charges to cover card processing. Especially the more expensive ones like Visa Infinite cards.
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When you say (in your channel video) that isn’t much of a savings: It doesn’t even reverse the 40% increase in transition fees to merchants since 2020. It just rolls back a small part of it.