Court grants preliminary approval to revised Visa and Mastercard interchange settlement

Visa said a U.S. federal court granted preliminary approval to the revised settlement of the interchange multidistrict litigation. Under the terms, the U.S. combined average effective credit interchange rate falls 10 basis points for five years, and standard consumer credit rates are capped at 125 basis points for the term. The agreement is still subject to final court approval, and merchants gain more surcharging options and choice over which card categories they accept.

• Interchange reduction of 10 basis points on the U.S. combined average effective credit rate for five years
• Standard U.S. consumer credit rates capped at 125 basis points for the term
• Merchants can choose whether to accept commercial, premium consumer and standard consumer credit cards
• Final court approval still pending