Payment system operators Visa and Mastercard have reached an antitrust settlement with the US Department of Justice, involving a sum of $30 billion, which is the largest settlement of its kind in history.
Merchants are expected to save $29.79 billion The stock prices of Visa and Mastercard were stable on Tuesday.
Under the settlement agreement, Visa and Mastercard agreed to gradually reduce the credit card service fee ratio charged to merchants, with a minimum reduction of 4 basis points every 3 years, a minimum average reduction of 7 basis points after 5 years, and to maintain the relevant ratio for at least 5 years. At the same time, some clauses that hinder market competition will be removed. According to the court documents, after the two major payment system operators agreed to reduce the merchant fee ratio, the amount saved by the merchants is roughly calculated to be $29.79 billion, which may help reduce consumer costs in the long run.
Visa and Mastercard did not admit that their past practices were wrong in the settlement agreement. The settlement agreement will not take effect until it is approved by the judge.
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