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.

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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.