• Wed. May 22nd, 2024

Small Business Owners Breath a Sigh of Relief as Mastercard and Visa Agree to $30 Billion Settlement Reducing Credit Card Fees

BySamantha Nguyen

Mar 27, 2024
Small Tulsa Business Optimistic About Visa and Mastercard Settlement Impact on Small Businesses

A recent $30 billion settlement has been reached between Mastercard and Visa as a result of an anti-trust lawsuit dating back to 2005. This settlement means that small businesses will pay lower fees to credit card companies whenever a customer makes a payment using a credit card. The news is welcomed by many small business owners, who already face many challenges in today’s economy.

One such business owner, Ashley Ryan, who owns Stash Apparel and Gifts on Brookside, explains that the majority of her customers pay with credit cards due to the prevalence of digital transactions. Currently, small businesses like hers pay around 3 to 4 percent in fees for every credit card transaction, which can add up significantly over time. The potential reduction in fees as a result of this settlement could positively impact her business’s bottom line.

Ryan discusses how credit card transactions have become the norm in today’s society, with customers preferring the convenience and rewards associated with card usage. However, she also emphasizes that these transactions come at a cost to businesses, as they are charged higher fees for customers who earn rewards or points through their credit card purchases. Any savings in fees for small businesses like hers is seen as a valuable opportunity to reduce costs and stay competitive.

While the settlement still requires approval from a federal judge, it sets a cap on the fees businesses pay to credit card companies until 2030. At that point, both parties will need to renegotiate the terms. This potential cost-saving measure offers hope to small business owners like Ashley Ryan, who are constantly looking for ways to manage expenses in an increasingly challenging economic landscape.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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