Small businesses across the country are rejoicing after Mastercard and Visa settled a $30 billion lawsuit that will result in lower fees for credit card transactions. This settlement is a result of an anti-trust lawsuit filed against the two companies in 2005. The news is particularly welcome for small business owners like Ashley Ryan, who owns Stash Apparel and Gifts on Brookside.
For Ryan, this development comes as a relief given the challenges of operating a small business in today’s economy. Small businesses are required to pay a percentage of each transaction back to credit card companies whenever customers use a card to make a purchase. According to Ryan, most customers prefer paying with a credit card due to the convenience and rewards associated with it. However, these fees can add up significantly over time, placing a financial strain on businesses like hers.
Ryan emphasizes the importance of lower fees for her business and the local community. She notes how higher fees translate to more expenses for businesses, which can have a significant impact on their ability to compete in the marketplace. With expenses already high for small businesses, any opportunity to save money is seen as beneficial.
Under the terms of the approved settlement, both parties will impose a cap on the fees businesses pay until 2030. After that date, both parties will have the opportunity to renegotiate. This development is expected to provide relief to small businesses like Ryan’s, allowing them to operate more efficiently and competitively in the marketplace. Despite the challenges that come with running a small business, Ryan remains optimistic about what lower credit card fees can bring her business and community.
The settlement stems from an anti-trust lawsuit filed against Mastercard and Visa in 2005 by merchants who claimed that they were being charged unfairly high processing fees by the two companies.
The approved settlement has been welcomed by merchants across the country who had been lobbying for lower processing fees for years.
The new agreement between Mastercard and Visa is expected to lead to cost savings for small businesses across America.
Small business owners are excited about this new development as it will help them reduce their overhead costs.
For Ryan, this development means she can now focus more on growing her business instead of worrying about paying high processing fees every month.
Overall, this agreement between Mastercard and Visa will have positive effects on small businesses across America by providing cost savings and helping them grow their operations more efficiently.
