Visa and MasterCard will be paying out $6 billion to plaintiffs to settle claims that the credit card giants engaged in price fixing on swipe fees. The settlement also includes an eight-month swipe fee reduction, saving business owners $1.2 billion, and allows merchants to pass along the cost of credit card swipes to customers which, as we know, wasn’t allowed previously.
Even though the settlement still has to be approved by the federal courts, some small businesses argue that it doesn’t go far enough to protect owners from unfair practices by credit card companies. The possibility that swipe fees could go back to their current rates in eight months leaves many with significant financial concerns. Appeals are anticipated.