Visa and Mastercard Agree to Settle Antitrust Litigation over High Swipe Fees: What this Means for Merchants and Cardholders

Visa and Mastercard Reach $30 Billion Settlement to Reduce Merchant Fees

After years of antitrust litigation, Visa and Mastercard have reached a settlement with merchants to reduce the swipe fees they pay for transactions. The deal, announced in 2017, aims to lower fees by $30 billion over five years.

The case was initiated by merchants in 2005 and centered on reducing the high swipe fees that merchants paid for credit card transactions. Merchants typically paid about 2% of the total transaction amount, with costs possibly rising to 4% for premium rewards cards. Under the settlement agreement, Visa and Mastercard will aim to reduce these fees by at least 0.04 percentage points for a minimum of three years.

Despite this reduction, cardholders will not see any changes in their rewards programs or credit access according to statements made by both companies. Visa and Mastercard’s stock prices experienced slight increases following the announcement of the settlement, indicating investor confidence in the deal.

However, it is important to note that the settlement has not been finalized and is awaiting approval from the US District Court for the Eastern District of New York. The case could also be subject to appeal, extending an already long legal process. This story is still developing, and updates will be provided as more information becomes available.

Sophia Reynolds

As a content writer at, 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 - where every word has the power to inform and inspire.

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