Mastercard, Visa reach $30 billion settlement over credit card fees

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Mastercard, Visa reach $30 billion settlement over credit card fees
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Halifax police investigating Monday morning Dartmouth death as suspicious | SaltWire #newsupdateNEW YORK -Visa and Mastercard reached an estimated $30 billion settlement to limit credit and debit card fees for merchants, with some savings likely to be passed on to consumers through lower prices.

Under the settlement announced on Tuesday, Visa and Mastercard will reduce interchange rates by four basis points in the United States for three years, and cap rates for five years. The fee rollbacks and caps alone are worth $29.79 billion, according to court papers, and Visa estimated that small businesses comprise more than 90% of the settling merchants.

"Competition among merchants results in these cost savings being passed on to customers in the form of lower prices," Stiglitz added.

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