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Visa and Mastercard reached a settlement estimated at $30 billion to cap credit and debit card fees for merchants and potentially pass some of the savings on to consumers through lower prices.
The agreement is considered one of the largest settlements in U.S. history and, if approved by the court, would resolve most claims in a nationwide lawsuit that began in 2005.
Merchants take a different view, arguing that the savings are temporary and still high. Visa and Mastercard will reduce card payment rates by at least 4 basis points over three years and ensure that the average card payment rate over five years is 7 basis points below the current average.
The settlement agreement is subject to court approval and may not take effect earlier than late 2024 or early 2025.
(Source: inquirer Image source: unsplash)
