Visa and Mastercard Reach Settlement with US Merchants in 20-Year Fee Dispute
The agreement ends a legal battle dating back to 2005 over alleged monopolistic practices, reducing credit card payment fees and offering merchants more service flexibility.
Summary
Visa and Mastercard have agreed to settle a legal dispute with US merchants that began in 2005 over claims of monopolistic practices. The settlement will lower credit card payment fees and provide merchants more flexibility in choosing services. A previous settlement proposal in 2024 was rejected by a judge.
Terms & Concepts
- Credit card payment fees: Fees charged to merchants for processing customer payments via credit cards.
- Monopolistic practices: Business actions that unfairly limit competition and control market conditions.
- Settlement: A legal resolution where parties agree to terms without continuing litigation.