Visa, Mastercard reach $30 billion swipe-fee deal with merchants

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4 thoughts on “Visa, Mastercard reach $30 billion swipe-fee deal with merchants

  1. Wait a minute? Are we (consumers) actually going to see fees go down or not?

    In the US, credit card processing fees are an average of 9 times higher than they are in Europe. The US average is about 2.7%, in the EU it’s 0.3%.

    I want in on consumer class action lawsuit that keeps me from paying for some rich guys credit card miles vacation to Hawaii!

    1. Chuck Schumer has filed legislation the last couple years to regulate exactly that, that specifically targets Visa and Mastercard. It does not target American Express, as Amex is both the card issuer and the bank. He previously got legislation that regulated debit card interchange fees passed by sticking it into a military spending bill.

      In much of Europe, a no annual fee credit card pretty much taps out at 1% cash back, and you have to pay a fee for anything more. In the US its pretty easy to get 1.5 or 2% catch all cards, or 3-4% for no annual fee on certain transactions.

  2. I had to look up the definition of a “basis point”. It is 100th of a percent. So we will see fees go down by not even 1%, more like 0.12% over the next 4 years. Sounds like a back room deal to me.

    1. If you have to lookup what a BP is… maybe do not worry about how the financial world works?

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