BAKU, Azerbaijan, March 27. Visa Inc. and Mastercard Inc. have agreed to lower interchange fees on credit cards as part of an agreement with the US merchant community reached after nearly two decades of litigation, Trend reports.
According to Visa, more than 90 percent of the community's members are small businesses.
Under the terms of the agreement, interchange fees for merchants in the US will be reduced and remain at that level for five years, according to a Visa press release.
The agreement gives merchants more flexibility in accepting payments, including offering users preferred payment methods. It also provides funding for new training programs for small businesses on accepting payments and managing costs.
"Through direct engagement with the U.S. merchant community, we have reached an agreement that provides significant concessions and addresses the concerns put forward by small businesses," Visa's statement says.
This agreement offers merchants more flexibility in accepting payments, including offering users preferred payment methods. It also provides funding for new training programs for small businesses on payment acceptance and expense management.
"Through direct engagement with the US merchant community, we have reached an agreement that provides significant concessions and addresses the concerns put forward by small businesses," the statement released by Visa reads.
"This agreement ends a long-running dispute and provides significant benefits and certainty for business owners, including flexibility in the use of card programs," the data provided by Mastercard says.
"This deal, which requires court approval, will end the class-action lawsuit filed by US merchants against Visa and Mastercard. It will also save small businesses nearly $30 billion in fees over five years," the statement from the lawyers representing the plaintiffs notes.
To note, Visa (NYSE: V) is a global leader in the electronic
payments industry. Visa processes payment transactions between
consumers, businesses, and financial and government institutions in
more than 200 countries and territories. Its mission is to unite
the world through an innovative, convenient, reliable, and secure
payment network to promote consumer well-being and business and
economic prosperity.
Meanwhile, Mastercard is an international payment system that
provides financial services, including credit, debit, and prepaid
cards. It allows its holders to make cashless payments at millions
of points of sale around the world. Mastercard also provides
technology solutions for banks, merchants, and other financial
institutions. Mastercard cards are accepted in many countries and
are used for a variety of transactions, including in-store
purchases, online transactions, ATM cash withdrawals, and other
financial transactions.
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