There is a lot going on in the payments space and for the majority of people probably wouldn't know that Vias & Mastercard fees have been overcharging merchants for decades and there has been a suppression order out to keep this quite i posted about this over a year ago, it seems the Retail Corp still haven't reached a settlement figure.

Visa and Mastercard's $30 Billion Settlement Hits Major Roadblock

June 17, 2024

Visa and Mastercard's proposed $30 billion settlement, aimed at limiting credit and debit card fees for merchants, is facing potential rejection. U.S. District Judge Margo Brodie of Brooklyn indicated she is likely to disapprove the settlement, citing court records from a recent hearing.

Judge's Standpoint: Judge Brodie plans to issue an opinion explaining her reasoning for this likely decision. Both Visa and Mastercard expressed disappointment, with Mastercard describing the settlement as a "fair resolution" and Visa calling it an "appropriate resolution" to the nearly two-decade-old case.

Background:

• Announcement: The settlement was announced on March 26.

• Purpose: To resolve most claims in the nationwide litigation involving more than 90% of settling merchants, mainly small businesses.

• Complaint: Merchants have long criticized Visa and Mastercard for charging excessive swipe fees and restricting cheaper payment alternatives.

Financial Context: Swipe fees, also known as interchange fees, reached $172 billion in 2023, doubling over the last decade. The Merchants Payments Coalition, representing various retailers and grocers, highlighted these figures.

Settlement Terms:

• Swipe Fee Reduction: From an average of 1.5% to 3.5%, down by at least 0.04 percentage points for three years.

• Rate Cap: Five-year cap on rates.

• Anti-steering Provisions: Removal of these provisions.

Criticism: The National Retail Federation, the world's largest retailer trade group, is among the objectors. It deemed the settlement "manifestly insufficient," arguing it provides "meager and temporary" benefits while allowing Visa and Mastercard to continue dictating swipe fees and imposing a broad ban on future claims by Merchant