Judge rejects $30 billion Visa, Mastercard swipe-fee settlement
What changes would the rejected settlement have made to swipe fees?
The rejected settlement would have required the average swipe fee to fall by at least 0.04 percentage points for three years and remain at least 0.07 percentage points below the current average for five years. It also would have prevented credit card companies from increasing swipe fees until 2030.
How did Visa and Mastercard react to the judge's decision?
Visa and Mastercard expressed disappointment with the judge's decision. Mastercard spokesperson Will O'Connor said the settlement presented a "fair resolution" to the 19-year dispute. Visa similarly called the settlement an "appropriate resolution" that resulted from "lengthy and thoughtful discussions" with merchants.
What would the settlement have allowed businesses to do regarding surcharges?
The settlement would have allowed businesses to impose surcharges based on the Visa or Mastercard card customers used and direct them to cheaper payment methods.