A settlement that could scramble the credit card businessA long-running fight between the credit card giants Visa and Mastercard and retailers in the United States is nearing an end, with the promise of lower fees for merchants.
But the proposed class-action settlement could have wider consequences, including for the lucrative business of high-end credit cards — and for retailers.
What’s in the settlement: Visa and Mastercard said on Tuesday that they had agreed to reduce swipe fees, costs associated with the use of a credit card, for about five years.
Perhaps more important, merchants will be able to raise their prices based on the kind of card.
For example, buying groceries with a higher-fee card — typically a premium card like the Chase Sapphire Reserve — could become more expensive than paying with a lower-end one.
Organizations:
Visa, Mastercard, Chase
Locations:
United States