US payment giants Visa and Mastercard are reportedly close to reaching a major settlement with retailers that could lower credit card transaction costs. The deal would also give merchants more flexibility in deciding which types of cards they accept.
According to the Wall Street Journal, both Visa and Mastercard plan to reduce interchange fees — charges that merchants pay each time a customer uses a credit card. These fees currently average between 2 and 2.5 percent per transaction. Under the new agreement, they could be reduced by about a tenth of a percentage point over the next few years.
The proposed settlement would also relax existing rules requiring merchants to accept all cards within a network once they agree to accept one. This means shops could choose whether to accept only specific types of cards, such as rewards, no-rewards, or commercial cards.
The move aims to resolve a long-running legal dispute dating back to 2005. Last year, Visa and Mastercard reached a separate $30 billion settlement that included small reductions in swipe fees and restrictions on future increases.
Retailers have long argued that high swipe fees unfairly increase their operating costs and limit their ability to guide customers toward cheaper payment options. The new settlement would also address surcharging rules, allowing merchants to pass transaction costs on to customers if they choose.
Both Visa and Mastercard have denied any wrongdoing in agreeing to the settlements. The companies declined to comment on the latest negotiations, but experts believe the agreement could significantly reshape how businesses handle credit card payments.
If finalized, the deal could provide relief for retailers facing rising operational costs and help stabilize the payments ecosystem in the long term.
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