FORBES
Visa and Mastercard will reduce credit card “swipe fees” for merchants for the next five years—which could save retailers around $30 billion—in a landmark class action settlement announced Tuesday, ending decades-long antitrust litigation against the credit card issuers.
Mastercard and Visa will reduce the credit card processing fees for U.S.-issued consumer credit cards at every merchant by at least four basis points for the next three years and cap reduced rates for five years, according to a news release from Hilliard Shadowen LLP, a firm representing the plaintiffs.
The reduced rates must be at least seven basis points below the current average, which will be reviewed by an independent auditor, the release said.
The proposed terms settle a 2005 lawsuitthat alleged the credit card issuers and member banks violated antitrust laws, resulting in merchants paying excessive fees, according to the release.
