Mastercard Lands $38B Swipe Fee Deal Approval, Unveils Agent Pay for AI Transactions
MA•Mastercard and Visa secured preliminary judicial approval for a revised $38 billion merchant settlement that cuts swipe fees by 0.1 percentage point over five years and caps standard consumer card rates at 1.25% for eight years. Separately, Mastercard unveiled Agent Pay to enable AI-driven, high-velocity machine microtransactions.
1. Preliminary Approval for $38B Swipe Fee Settlement
A federal judge granted preliminary approval to a revised $38 billion settlement between Mastercard, Visa and over 12 million merchants, addressing litigation since 2005 over alleged excessive interchange fees. Judge Brian M. Cogan described the terms as fair and reasonable and anticipates final approval.
2. Settlement Terms and Merchant Provisions
The deal mandates a 0.1 percentage-point reduction in swipe fees over five years and caps standard consumer card rates at 1.25% for eight years. It also breaks the Honor All Cards rule, allowing merchants to selectively accept card types and impose surcharges.
3. Mastercard Launches Agent Pay for AI Transactions
Mastercard introduced Agent Pay, a new platform enabling AI agents and machines to execute continuous, high-velocity microtransactions. The service aims to support emerging machine-driven commerce and open new revenue streams in AI-enabled markets.
