AP News, June 26, 2024, Judge Puts $30 Billion Visa, Mastercard Settlement On Hold, In Signal Of Likely Rejection
A federal judge said she’s not likely to approve the $30 billion settlement between the payment processing giants Visa and Mastercard and the merchants who say they’ve overpaid on swipe fees.
Visa and Mastercard reached a settlement with a group of small businesses and merchants back in March. The deal would lower and cap the fees charged by Visa and Mastercard and allow small businesses to collectively bargain for rates with the payment processors in a similar way that the large merchants do on their own now.
But the settlement was not universally accepted. The National Retail Federation, the largest U.S. retail trade group, said it was likely to oppose the settlement, saying the relief was only temporary and that payment processing fees remain too high. The settlement would have capped swipe fees for five years, which merchants opposed to the settlement said was insufficient.
