Mastercard, Visa reach $30 billion settlement to reduce fees for small businesses

Small Tulsa Business Optimistic About Visa and Mastercard Settlement Impact on Small Businesses

Small businesses across the country are rejoicing as Mastercard and Visa reached a $30 billion settlement in an anti-trust lawsuit. This settlement means that small businesses will pay lower fees to credit card companies whenever a customer makes a payment using a credit card. The news is particularly welcome for small business owners like Ashley Ryan, who owns Stash Apparel and Gifts on Brookside.

Ryan explains that her business relies heavily on digital transactions, with the majority of her customers paying with credit cards. Currently, small businesses like hers pay around 3 to 4 percent in fees for every credit card transaction, which can add up significantly over time. The potential reduction in fees as a result of this settlement could positively impact her business’s bottom line.

Credit card transactions have become the norm in today’s society, with customers preferring the convenience and rewards associated with card usage. However, Ryan emphasizes that these transactions come at a cost to businesses, as they are charged higher fees for customers who earn rewards or points through their credit card purchases. Any savings in fees for small businesses like hers is seen as a valuable opportunity to reduce costs and stay competitive.

While the settlement still requires approval from a federal judge, it sets a cap on the fees businesses pay to credit card companies until 2030. At that point, both parties will need to renegotiate the terms. This potential cost-saving measure offers hope to small business owners like Ashley Ryan, who are constantly looking for ways to manage expenses in an increasingly challenging economic landscape.

Sophia Reynolds

As a content writer at newsloki.com, I'm always on the lookout for the next intriguing story to share with our audience. With a passion for crafting engaging and informative content, I delve into a variety of topics ranging from breaking news to feature pieces. My goal is to captivate readers through my words and keep them coming back for more. When I'm not typing away at my keyboard, you can find me exploring new coffee shops, diving into a good book, or taking long walks in nature. Join me on this journey of storytelling and discovery at newsloki.com - where every word has the power to inform and inspire.

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