US Court Approves Preliminary $38B Visa, Mastercard Fee Deal
V•US court granted preliminary approval for a $38 billion settlement resolving the two-decade swipe fees litigation against Visa and Mastercard, imposing modest fee reductions and rate caps on Visa alongside card acceptance rule changes. Major retailers warn limited fee cuts and unchanged interchange competition will fail to provide long-term relief.
1. Preliminary Court Approval
A federal judge in the Eastern District of New York granted preliminary approval to a $38 billion settlement in the swipe fees lawsuit, moving the case into its next stage of review under Judge Brian Cogan’s oversight.
2. Settlement Terms
Under the agreement, Visa will implement modest interchange fee reductions over several years, impose temporary caps on certain rates and grant merchants the right to refuse specific Visa card products rather than accept all offerings.
3. Merchant Response
Leading retail groups, including the National Retail Federation, argue that the settlement’s limited fee cuts and continued lack of competition in setting interchange rates fall short of delivering meaningful cost relief for merchants and consumers.
4. Outlook and Financial Implications
If finalized, the settlement would rank among the largest US antitrust resolutions, reducing Visa’s legal uncertainty but likely yielding only modest revenue impact due to the limited scale of fee reductions.
