League evaluating impact of Visa/Mastercard settlement
Published by: Jared Weiser
April 3, 2024 | Government Affairs
Last week, Visa and Mastercard settled a lawsuit with merchants that would reduce and cap credit card interchange fees. The deal settlement could save merchants tens of billions over the next five years. The settlement, which is still subject to court approval, requires Visa and Mastercard to reduce published fees by at least four basis points for at least three years. They also agreed to freeze rates at year-end 2023 levels for the next five years. It is currently unclear how this settlement could impact interchange fee revenue for credit unions. The League is working to analyze the settlement details and will share more information as it becomes clear. This development could fundamentally change how credit union advocates discuss future interchange system revisions in Congress. One thing you can count on is that the League will continue its strong opposition to the Credit Card Competition Act.
