Visa Agrees to Landmark Settlement with U.S. Merchants Reducing Rates and Guaranteeing No Increases for at Least Five Years
26 März 2024 - 1:45PM
Business Wire
After nearly 20 years of litigation, Visa (NYSE: V) today
announced it has agreed to a landmark settlement with U.S.
merchants, more than 90 percent of which are small businesses,
lowering credit interchange rates and capping those rates into
2030. The settlement also provides updates to several key network
rules giving merchants more choice in how they accept digital
payments.
The agreement’s multi-year benefits for businesses include:
- Lower interchange rates. The settlement will reduce
credit interchange rates for U.S. merchants, comprised largely of
small businesses.
- Interchange rates will not go up. The agreement will cap
the reduced credit interchange rates for five years, providing an
unprecedented level of cost certainty long sought by
merchants.
- New ways to manage costs. The settlement gives merchants
greater flexibility at the point-of-sale, including the opportunity
to steer to preferred payment methods and more optionality around
surcharging. It also provides funding for new programs to educate
small businesses about payment acceptance options and how to best
manage costs.
“By negotiating directly with merchants, we have reached a
settlement with meaningful concessions that address true pain
points small businesses have identified,” said Kim Lawrence,
President, North America, Visa. “Importantly, we are making these
concessions while also maintaining the safety, security,
innovation, protections, rewards and access to credit that are so
important to millions of Americans and to our economy.”
Today’s settlement agreement with merchants resolves claims
against Visa, Mastercard and other defendants brought by the
injunctive relief class in the lawsuit entitled In re Payment Card
Interchange Fee and Merchant Discount Antitrust Litigation. It is
subject to approval by the court.
About Visa
Visa (NYSE: V) is a world leader in digital payments,
facilitating transactions between consumers, merchants, financial
institutions and government entities across more than 200 countries
and territories. Our mission is to connect the world through the
most innovative, convenient, reliable, and secure payments network,
enabling individuals, businesses and economies to thrive. We
believe that economies that include everyone everywhere, uplift
everyone everywhere and see access as foundational to the future of
money movement. Learn more at visa.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements generally are identified by words
such as “will,” “is expected,” and other similar expressions.
Examples of forward-looking statements include, but are not limited
to, the terms of the settlement agreement and expectations
regarding the impact of the settlement agreement.
By their nature, forward-looking statements: (i) speak only as
of the date they are made; (ii) are not statements of historical
fact or guarantees of future performance; and (iii) are subject to
risks, uncertainties, assumptions or changes in circumstances that
are difficult to predict or quantify. Therefore, actual results
could differ materially and adversely from Visa’s forward-looking
statements due to a variety of factors, including the timing and
outcome of the court approval process, Visa’s ability to recognize
the intended benefits of the settlement, Visa’s ability to effect
its obligations under the settlement agreement, and various other
factors, including those contained in our Annual Report on Form
10-K for the fiscal year ended September 30, 2023, and our other
filings with the U.S. Securities and Exchange Commission.
You should not place undue reliance on such statements. Except
as required by law, we do not intend to update or revise any
forward-looking statements as a result of new information, future
developments or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240325345937/en/
Curtis Blessing Press@visa.com
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