Insiders: Visa and Mastercard to end 20-year fee dispute with U.S. merchants

Foresight News reported, citing The Wall Street Journal and informed sources, that Visa and Mastercard are about to reach a settlement with U.S. merchants, ending a legal dispute that has lasted for two decades. The settlement aims to reduce credit card payment fees charged to merchants and give them greater autonomy in choosing which credit cards to accept.

The proposed agreement shows that Visa and Mastercard will reduce fees by an average of 0.1% over several years and allow merchants to independently choose which credit cards to accept. Previously, both companies required merchants to accept all credit card payments within the network if they accepted any one type of credit card from the network.

The legal dispute between the two parties began in 2005, when U.S. merchants accused Visa, Mastercard, and major banks of monopolistic practices regarding fees and credit card acceptance rules. In March 2024, the two sides reached a settlement agreement proposing to reduce fees by 0.07% over five years and give merchants greater flexibility, allowing them to charge surcharges for credit card payments, but the agreement was rejected by the presiding judge.