Core Viewpoint - Visa and Mastercard have reached a proposed settlement in a long-standing legal battle with merchants, which aims to reduce interchange fees and provide more flexibility in payment acceptance, pending court approval [2][3][5]. Summary by Sections Settlement Details - The settlement, announced on November 10, still requires approval from the Eastern District Court of New York and would conclude a case that began in 2005 regarding alleged collusion to violate U.S. monopoly laws through interchange fees [2]. - Visa and Mastercard will reduce interchange fees, typically set at 2% to 2.5%, by 0.1 percentage points for five years under this agreement [3]. Merchant Benefits - Merchants will have the option to choose whether to accept U.S. cards in specific categories, including commercial cards and premium consumer cards, with standard consumer rates capped at 1.25% [4]. - The settlement includes a "merchant education program" aimed at helping merchants manage payment acceptance and costs [5]. Reactions and Concerns - Mastercard emphasized that smaller merchants would benefit from more acceptance choices, reduced costs, and simplified rules, enhancing the overall payments experience [6]. - However, the Merchants Payments Coalition criticized the fee reduction as "minuscule" and expressed concerns that Visa and Mastercard could raise fees again after the temporary cuts expire, highlighting that merchants have limited choices regarding rewards cards, which constitute 85% of all issued cards [7].