Major payment networks Visa and Mastercard are close to finalising a settlement with U.S. merchants in a legal dispute that has lingered since 2005. According to The Wall Street Journal, the agreement would lower average interchange fees—from roughly 2 %–2.5 %—by about 0.1 percentage point.
In addition to fee reductions, the deal would loosen rules requiring merchants to accept all types of cards from one network once they accept one. “Merchants that accept one kind of Visa credit card wouldn’t have to accept all … credit cards,” the Journal says.
One of the most significant implications: the possibility that stores might reject rewards‑cards, which carry higher fees for merchants. “Some stores might turn away rewards cards, which charge them higher fees,” per the report.
The settlement still requires court approval and doesn’t affect separate litigation by large merchants seeking damages. If approved, it could reshape how consumers use premium cards and prompt changes in rewards programs across the industry.
Source:
Disclaimer
Artificial Intelligence Disclosure & Legal Disclaimer
AI Content Policy.
To provide our readers with timely and comprehensive coverage, South Florida Reporter uses artificial intelligence (AI) to assist in producing certain articles and visual content.
Articles: AI may be used to assist in research, structural drafting, or data analysis. All AI-assisted text is reviewed and edited by our team to ensure accuracy and adherence to our editorial standards.
Images: Any imagery generated or significantly altered by AI is clearly marked with a disclaimer or watermark to distinguish it from traditional photography or editorial illustrations.
General Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service. In no event shall South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service.
The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice. The Company does not warrant that the Service is free of viruses or other harmful components.
