Visa and MasterCard to Reduce Transaction Fees
The U.S.-based global payment networks Visa and Mastercard are reportedly nearing a settlement to resolve their long-standing dispute with merchants, according to The Wall Street Journal. Under the proposed agreement, the two companies would reduce the transaction fees charged to retailers and allow merchants greater flexibility in refusing certain types of credit cards. The report references information shared by Reuters.
At present, merchants pay an average fee of 2 to 2.5 percent per transaction. Under the settlement framework, these fees will be reduced by approximately one-tenth of a percentage point over several years. In addition, the current requirement that merchants who accept one type of card from a network must accept all types of cards under the same network will be relaxed.
This development is part of efforts to conclude a legal battle that began in 2005. Last year, Visa and Mastercard had agreed to a settlement valued at nearly USD 30 billion, which included commitments to reduce fees for a period of three years and keep them below a defined threshold.
DBTech/BMT/OR
