Visa and Mastercard Settle Long-Standing Legal Dispute with U.S. Merchants

According to Foresight News, Visa and Mastercard are nearing a settlement with U.S. merchants to resolve a legal dispute that has lasted two decades. The agreement aims to reduce credit card transaction fees for merchants and provide them with greater autonomy in choosing which credit cards to accept. The proposed settlement outlines that Visa and Mastercard will decrease fees by an average of 0.1% over several years. Additionally, merchants will have the option to select which credit cards they wish to accept, a shift from the previous requirement that mandated acceptance of all cards within a network if one was accepted. The legal conflict began in 2005 when U.S. merchants accused Visa, Mastercard, and major banks of monopolistic practices concerning fees and credit card acceptance rules. In March 2024, a settlement was reached proposing a 0.07% fee reduction over five years and granting merchants more flexibility, including the ability to impose surcharges on credit card payments. However, this agreement was rejected by the presiding judge.