Judge rejects Visa, Mastercard $30B settlement over controversial swipe fees

Core Points - A US judge rejected a $30 billion antitrust settlement involving Visa and Mastercard, which aimed to limit fees charged to merchants [1][3] - The settlement was intended to resolve litigation over swipe fees, which totaled approximately $72 billion in 2023 [3] - Merchants and retail trade groups criticized the fees, which range from 1.5% to 3.5%, as excessive and detrimental to consumers [3][5] Settlement Details - The proposed settlement aimed to reduce the average swipe fee by at least 0.04 percentage points for three years and maintain it at least 0.07 percentage points below the current average for five years [5] - Visa and Mastercard would have capped rates for five years and removed anti-steering provisions, allowing merchants more flexibility in offering discounts or surcharges [5] - Trade groups, including the National Retail Federation, opposed the settlement, arguing that the relief was minimal and temporary [5] Legislative Context - Some senators are advocating for the Credit Card Competition Act, which would allow merchants to use alternative payment networks for processing Visa and Mastercard transactions [7] - The rejection of the settlement does not impact a separate $5.6 billion class action settlement involving Visa, Mastercard, and around 12 million merchants [7] - A federal appeals court upheld the $5.6 billion settlement in March 2023, following the dismissal of a previous $7.25 billion settlement [7]