The proposed merchant deal could alter card-network competition, while potentially prompting further regulatory scrutiny and legislative action on interchange fees.
A U.S. judge has granted preliminary approval to Visa and Mastercard’s $38 billion settlement with merchants over swipe fees, advancing a closely watched agreement that could affect how card-network fees are set and contested. The settlement may reshape competitive dynamics in merchant payments, while the latest report says it could also prompt further regulatory scrutiny and legislative action on interchange fees, affecting future financial industry practices. Concerns persist over the networks’ duopoly control and the structure of the fees merchants pay.