Visa and Mastercard Settle , Antitrust Suit Over Swipe Fees.
The two companies have reached a settlement with American merchants which could "save consumers tens of billions of dollars," NBC News reports.
Credit card companies collect swipe fees to enable transactions.
These fees are passed on by merchants to consumers.
The settlement is a result of a 2005 lawsuit alleging that merchants pay exorbitant fees to accept the companies' credit cards.
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In 2018, the credit card companies agreed to pay $6.2 billion in response to the lawsuit, but two issues still needed to be resolved.
Those issues pertained to rules imposed by Visa and Mastercard to accept their cards, and merchants who decided not to be included in the settlement.
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As part of the recent settlement, credit interchange fees will now be capped into 2030.
The fees must also be negotiated with merchant buying groups.
Over 90% of the merchants included in the settlement are small businesses, Visa said.
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The settlement must be approved by the Eastern District Court of New York but will likely take effect by early 2025
