Federal judge rejects $30 billion settlement between Visa, Mastercard and retailers
Which card companies are involved in this antitrust settlement case?
The antitrust settlement case involves two of the world's largest credit card networks, Mastercard and Visa. The proposed multi-billion settlement was reached with US merchants in March, aiming to lower swipe fees charged to retailers for credit and debit card transactions. However, a federal judge formally rejected the deal on Tuesday.
What did Judge Margo Brodie rule regarding the swipe-fees settlement?
Judge Margo Brodie rejected the $30 billion swipe-fees settlement between Visa, Mastercard, and retailers. The settlement aimed to limit fees charged to merchants for accepting credit and debit card payments. Many merchants and retail trade groups opposed the accord, arguing that fees would remain too high and that Visa and Mastercard would retain too much control over transactions.
How would the proposed settlement have changed swipe fees for retailers?
The proposed settlement between Mastercard, Visa, and retailers aimed to lower swipe fees that retailers must pay when a customer makes a purchase using a credit card. The settlement would have reduced these fees by at least 0.04% percentage points for a minimum of three years, and the card companies would maintain the swipe fee rates that existed as of December 31, 2023, for a period of five years1.