10-Q, Member Exclusive

Who stands to benefit [or suffer] from the Visa and Mastercard settlement?

  • While the Visa-Mastercard settlement news is still fresh and unfolding, understanding the degree to which different players —  merchants, banks, or consumers — truly benefit or stand at a disadvantage in the value chain will necessitate clarity once the dust settles.
  • Currently, it remains an intricate conundrum to unravel.
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Who stands to benefit [or suffer] from the Visa and Mastercard settlement?

    After Visa and Mastercard’s landmark settlement over swipe fees, the sentiment ‘better late than never’ resonates strongly.

    If passed, Visa and Mastercard will cut their transaction fees within the United States, a long-awaited development for merchants who stand to reap savings of up to $30 billion in interchange over the next five years. This settlement marks the culmination of a protracted legal battle initiated in 2005 by merchants, who contend that the credit card duopoly charges exorbitant payment processing fees to their detriment.

    As part of the revised terms of the networks’ rules, the two largest credit card networks and their issuing banks will also enforce caps on these new lower rates until 2030 and also eliminate anti-steering provisions.

    Separating fact from anticipation

    While the news is still fresh and unfolding, understanding the degree to which different players —  merchants, banks, or consumers — truly benefit or stand at a disadvantage in the value chain will necessitate clarity once the dust settles.

    Currently, it remains an intricate conundrum to unravel.


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      A victory, but in whose favor?

      by SARA KHAIRI

      After Visa and Mastercard’s landmark settlement over swipe fees, the sentiment ‘better late than never’ resonates strongly.

      If passed, Visa and Mastercard will cut their transaction fees within the United States, a long-awaited development for merchants who stand to reap savings of up to $30 billion in interchange over the next five years. This settlement marks the culmination of a protracted legal battle initiated in 2005 by merchants, who contend that the credit card duopoly charges exorbitant payment processing fees to their detriment.

      As part of the revised terms of the networks’ rules, the two largest credit card networks and their issuing banks will also enforce caps on these new lower rates until 2030 and also eliminate anti-steering provisions.

      Separating fact from anticipation

      While the news is still fresh and unfolding, understanding the degree to which different players —  merchants, banks, or consumers — truly benefit or stand at a disadvantage in the value chain will necessitate clarity once the dust settles.

      Currently, it remains an intricate conundrum to unravel.


      subscription wall for TS Pro

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