Visa, Mastercard settle long-running antitrust suit over swipe fees with merchants
Visa and MasterCard announced a settlement with U.S. merchants related to swipe fees that could potentially save American shoppers tens of billions of dollars.
Swipe fees are paid to Visa, Mastercard and other credit card companies in exchange for enabling transactions. Merchants ultimately pass on those fees to consumers who use credit or debit cards. The fees are calculated as a fixed fee plus a percentage of the sales total, typically about 1% to 3%.
Small businesses have increasingly begun posting signs near the register warning customers that they will pay more for the same item if they do not use cash.