Last week, credit card companies MasterCard and Visa reached a settlement with retailers who alleged the companies conspired to fix the fees that stores pay to accept credit cards.
This settlement could benefit any retailer that accepts credit cards, according to Catherine Clifford, who covered the settlement for Entrepreneur.com.
She shared these three ways the credit card settlement could affect your business:
1. You will get a discount on transaction fees. “As part of the settlement, Visa and MasterCard have agreed to issue a 0.1 percent discount on transaction fees for eight months,” Clifford wrote. “So, if you accept Visa or MasterCard, you will save some money on your processing costs.”
2. You will be able to charge more when customers pay with a credit card. “Before this lawsuit, Visa and MasterCard did not allow U.S. businesses to tack on fees,” she wrote. “Under the settlement, merchants will be able to do it, they just have to keep the surcharges reasonable and tell customers what they are charging.”
3. If you live in a state where surcharges are illegal, none of this applies to you. “Surcharging is prohibited in the following 10 states, according to a research report from investment firm Sterne Agee: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas,” Clifford reported. “It is possible that states will change their laws, but none of that is known right now.”
To read the complete Entrepreur.com article, click here.
For MasterCard’s statement on the settlement, click here.
For Visa’s statement on the settlement, click here.