Visa, Mastercard agree to settlement over swipe fees with merchants [Video]

A landmark antitrust class action settlement has been reached between U.S. merchants and Visa and Mastercard to resolve claims for a lawsuit entitled “In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation.” 

The settlement, among the largest in U.S. antitrust history, relates to swipe fees and could deliver shoppers and U.S. merchants billions of near- and long-term savings. 

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%.

Increasingly, small businesses have begun posting signs near the register warning customers that they will pay more for the same item if they do not use cash.

According to the settlement announced Tuesday, Visa and Mastercard will cap the credit interchange fees into …