Court approves Visa-Mastercard settlement

A federal judge just approved a massive settlement between Visa, Mastercard, and millions of U.S. merchants. For any business owner who accepts credit cards, this is a long-awaited win regarding swipe fees. The core of the deal involves a reduction in swipe fees for at least three years. While the percentage drops may seem small, they represent significant savings for high-volume retailers. Perhaps more importantly, the ruling gives you more power over how you handle payments at the point of sale. You will soon have more flexibility to steer customers toward cheaper payment methods. This includes legal protections for adding surcharges to specific types of high-cost credit cards. For those offering consumer financing or Buy Now, Pay Later (BNPL) options, this creates a major strategic opening. You can now more aggressively promote your internal financing programs or private-label cards as a way to avoid the increasing costs of standard credit card processing. Overall, this move lowers your overhead and gives you a stronger hand when negotiating with payment processors. It’s a good time to audit your current merchant fees and see how these new rules can improve your bottom line.

Source: Payments Dive

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