After nearly two decades of litigation, Visa and Mastercard have reached a massive antitrust settlement with US retailers capping credit card swipe fees.
The agreement, which is still subject to court approval, will make Visa and Mastercard transactions cheaper for retailers and for some consumers.
But not all cardholders will be so lucky. Some customers who use certain brands like Chase Sapphire Reserve may see higher fees at checkout, according to Bloomberg.
That’s because, as part of the agreement, retailers will be able to negotiate interchange fees — the cost of a swipe — directly with the credit card companies based on how much it costs to run different cards.
The popular Chase Sapphire Reserve card, for example, charges a higher interchange fee because it comes with the Visa Infinite branding, Bloomberg reported.
That means these cardholders could pay more at checkout than someone with a different card, according to the outlet.
“By negotiating directly with merchants, we have reached a settlement with meaningful concessions that address true pain points small businesses have identified,” Visa’s North America president Kim Lawrence, said in a statement after the settlement. “Importantly, we are making these concessions while also maintaining the safety, security, innovation, protections, rewards, and access to credit that are so important to millions of Americans and to our economy.”
