Visa and Mastercard have agreed to settle a decades-long anti-trust case filed by merchants.
The US$30-billion settlement would lower US merchant fees over five years. Swipe fees cost them up to four percent of the total transaction a customer makes.
This agreement could lower those fees by at least 0.4 percentage points for a minimum of three years.
Although similar fees are charged by financial institutions in Jamaica on behalf of Visa and Mastercard, it’s not known if the settlement has any effect on what happens in Jamaica.
Both Visa and Mastercard say access to credit will not be affected.
Some critics believe it may not go far enough, saying the savings would be temporary and fees would remain high.
Merchants have long accused Visa and Mastercard of charging inflated swipe fees, or interchange fees, when shoppers used credit or debit cards.
The US District Court for the Eastern District of New York still has to approve the settlement.
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