All articles tagged with #interchange fees
Visa and Mastercard are close to a settlement ending a two-decade legal dispute with merchants, involving a reduction in interchange fees by about 10 basis points and relaxed acceptance rules, potentially allowing merchants to impose surcharges on their cards.
Americans may be eligible for a one-time cash payout as part of a $5.6 billion credit card settlement, resolving claims of overcharging on interchange fees by Visa and MasterCard. Those who used Mastercard or Visa debit or credit cards between January 1, 2004 and January 25, 2019, can apply for a payout by filling out a form before the May 31, 2024 deadline. Additionally, Visa and Mastercard have reached a $30 billion antitrust settlement to limit credit and debit card fees for merchants in the U.S., potentially leading to lower transaction costs for businesses and consumers.
The UK's payments regulator, the Payment Systems Regulator (PSR), has provisionally proposed a cap on cross-border interchange fees charged by Mastercard and Visa on transactions between the UK and the European single market. The PSR's market review found that both companies had likely raised fees to an "unduly high level," costing UK businesses an extra £150-200 million ($190-250 million) last year. Under the proposed cap, the PSR would impose initial limits of 0.2% on debit transactions and 0.3% on credit transactions, with a lasting cap to be imposed after further analysis. Visa and Mastercard have disputed the findings, with Visa stating that the proposed remedies are "not justified." The PSR is inviting feedback on the proposals until the end of January, with a final report expected in the first quarter of 2024.