All articles tagged with #merchant fees
Visa and Mastercard have proposed a settlement that could allow merchants to discriminate between different tiers of their credit cards, potentially leading to declined rewards cards or surcharges for consumers, amid ongoing litigation over interchange fees. The settlement also includes temporary fee reductions but faces opposition from merchant groups who argue it doesn't go far enough to address interchange fee issues.
Visa and Mastercard have reached a proposed settlement with U.S. merchants to lower interchange fees over five years, potentially reducing costs for retailers and consumers but also affecting consumer rewards. The deal offers merchants more flexibility in accepting different categories of credit cards and is subject to court approval.
Cash discounts are becoming more common, with a 60% increase since 2015, though they still account for only 3% of cash payments. These discounts typically range from 2% to 4%, potentially exceeding credit card rewards. Businesses offer cash incentives to avoid credit card processing fees, which are 2% to 4% per transaction. While credit cards offer fraud protection and ease of tracking expenses, paying with cash or debit cards can save money, especially when surcharges are applied to credit card transactions.
Visa and Mastercard, along with banks issuing their cards, have agreed to a $30 billion settlement to resolve a long-standing antitrust case brought by merchants, aiming to reduce swipe fees over the next five years.