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When it comes time to make a purchase, which credit card you use could soon determine how much you pay.
A new settlement announced this week would end a longstanding dispute between businesses and Visa and Mastercard over credit card “swipe” fee practices.
Swipe fees are charged to retailers, service providers and other merchants each time a customer uses their card. Banks and card companies typically levy about 2% or more for every transaction, according to the National Retail Federation.
Previously, merchants had to “honor all cards” on a network — for example, if they accept one Visa credit card, then they must accept all Visa cards regardless of swipe fee rates charged. Under the proposed settlement, they can reject those cards with high fees to save their bottom line. What’s more, merchants may be able to charge customers different fees depending on which credit card they use.
