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The payment card interchange fee and merchant discount antitrust litigation is a United States class-action lawsuit filed in 2005 by merchants and trade associations against Visa, Mastercard, and numerous financial institutions that issue payment cards.
According to the settlement announced Tuesday, Visa and Mastercard will cap the credit interchange fees until 2030, and the companies must negotiate the fees with merchant-buying groups.
The settlement announced on March 26 was intended to resolve most litigation that began in 2005 over so-called swipe fees, also known as interchange fees, that merchants pay to accept Visa and ...
Visa and Mastercard, which control a combined 80 percent of the credit card network market, agreed in March to limit interchange fees they charge retailers who accept their card.
In the EU, interchange fees are capped to 0.3% of the transaction for credit cards and to 0.2% for debit cards, while there is no cap for corporate cards. [3] In the US, card issuers now make over $30 billion annually from interchange fees. Interchange fees collected by Visa [4] and MasterCard [5] totaled $26 billion in 2004. In 2005 the number ...
The Durbin amendment also gave the Federal Reserve the power to regulate debit card interchange fees, and on December 16, 2010, the Fed proposed a maximum interchange fee of 12 cents per debit card transaction, [9] which CardHub.com estimated would cost large banks $14 billion annually. [10]
The fees in question are “swipe fees,” also known as interchange fees, that are charged to the merchant for every transaction with processors like Visa and Mastercard.
In addition, the merchant account would be assessed a chargeback fee by the acquiring bank. [1] This is the opposite of a card present transaction, when the issuer of the card is liable for restitution. [2] Because of the greater risk, some card issuers charge a greater transaction fee to merchants who routinely handle card-not-present ...