Core Viewpoint - Visa has announced a potential legal settlement in the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, which includes Mastercard, aimed at providing relief and flexibility to US merchants in payment acceptance [1][4]. Settlement Terms - Credit surcharging: Merchants will have increased options to surcharge, even if they do not surcharge other credit networks [1]. - Honor All Cards: Merchants can choose to accept US credit cards in distinct categories—commercial, premium consumer, and standard consumer [2]. - Lower interchange: The settlement will reduce the US combined average effective credit interchange rate by 10 basis points for five years [2]. - Interchange rate certainty: The settlement will cap posted US credit interchange rates for five years [2]. - Standard US consumer credit rates will be capped at 125 basis points throughout the agreement [3]. - A new merchant education program regarding payment acceptance and cost management will be introduced [3]. Additional Insights - Visa stated that the 20-year litigation has reached the "best resolution for all parties" [3]. - The rise of new technologies may lead to further reductions in payment and transfer fees due to increased competition [3].