Visa, Mastercard settle decades-old swipe fees battle

by ian

Visa and Mastercard are settling a lengthy legal battle with U.S. merchants over swipe fees.

In the landmark five-year deal, the companies agreed to cut and cap credit card processing fees charged to merchants on every swipe. Those fees are frequently passed on to consumers. Visa says the lawsuit makes “meaningful concessions” and addresses “true pain points” for merchants.

More than 90% of those are small businesses, which will now be allowed to adjust prices based on the cost of accepting different credit cards. U.S. businesses are expected to save at least $30 billion over the next five years.