Visa and Mastercard agree to lower swipe fees

The companies will cap the fees they charge businesses when customers use their credit cards

Credit card fees at a convenience store
The lower fees will save merchants an estimated $30 billion
(Image credit: Angus Mordant / Bloomberg via Getty Images)

What happened

Visa and Mastercard agreed Tuesday to cap the swipe fees, or interchange fees, they charge businesses when customers use their credit cards, and let merchants steer customers to cheaper means of payment. The lower fees will save merchants an estimated $30 billion over five years.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us
Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.