Visa and Mastercard are preparing to overhaul how credit card transactions are priced after reaching a proposed settlement that could end two decades of legal battles with retailers. The move could bring small savings for merchants while also disrupting how consumers earn rewards on their cards.
As reported by Fox Business, the credit card giants agreed to lower the interchange fees that retailers pay every time a customer makes a purchase. These charges, also known as swipe fees, typically range between 2 per cent and 2.5 per cent per transaction. Under the settlement, that figure would drop by around one-tenth of a percentage point for most US credit card transactions over the next five years.
