Visa and Mastercard to reach settlement with US merchants to lower credit card payment fees

BlockBeats News, November 9, according to The Wall Street Journal, Visa and Mastercard are about to reach a settlement with U.S. merchants, ending a legal dispute that has lasted for two decades. According to the settlement agreement, the credit card payment fees charged to merchants will be reduced, and merchants will be given greater autonomy in choosing credit card services. Previously, both companies required that if a merchant accepted any one type of credit card within their network, they must accept all credit card payments within the network.

The legal dispute between the two parties began in 2005, when U.S. merchants accused Visa, Mastercard, and major banks of monopolistic practices regarding fees and credit card acceptance rules. In March 2024, the two sides reached a settlement agreement proposing to reduce fees by 0.07% over five years and grant merchants greater flexibility, allowing them to charge surcharges on credit card payments. However, this agreement was rejected by the presiding judge.