V - Visa and Mastercard Reach Deal to Lower Swipe Fees A Win for Merchants and Potential Boost for Consumer Choices: Analyst | Benzinga
Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) announced a settlement with U.S. merchants in which the card networks agreed to lower credit card interchange fees by 4bps in the U.S. The deal also caps swipe fees until 2030.
The settlement also removes anti-steering provisions, allowing merchants to price differently depending on the type of card a consumer uses at purchase.
While an interchange cap may limit their medium-term pricing power, Mizuho analyst Dan Dolev noted the settlement may help relieve regulatory pressure that Visa & Mastercard have otherwise faced. Plus, it should decrease the risk of further reduction to interchange fees between now and 2030.
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