• Wed. May 22nd, 2024

Small Businesses Cheer over Mastercard-Visa Settlement Amid Economic Uncertainty

BySamantha Jones

Mar 27, 2024
Small Tulsa Business Optimistic About Visa and Mastercard Settlement Impact on Small Businesses

Small businesses are facing many challenges in today’s economy, and the recent settlement between Mastercard and Visa has brought some relief. The $30 billion settlement is a result of an anti-trust lawsuit that dates back to 2005, and it means that small businesses will pay lower fees to credit card companies whenever a customer makes a payment using a credit card.

One small business owner, Ashley Ryan, who owns Stash Apparel and Gifts on Brookside, welcomes this news. Most of her customers pay with credit cards due to the prevalence of digital transactions. Currently, small businesses like hers pay around 3 to 4 percent in fees for every credit card transaction, which can add up significantly over time. The potential reduction in fees as a result of this settlement could positively impact her business’s bottom line.

Ryan discusses how credit card transactions have become the norm in today’s society, with customers preferring the convenience and rewards associated with card usage. However, she also emphasizes that these transactions come at a cost to businesses, as they are charged higher fees for customers who earn rewards or points through their credit card purchases. Any savings in fees for small businesses like hers is seen as a valuable opportunity to reduce costs and stay competitive.

While the settlement still requires approval from a federal judge, it sets a cap on the fees businesses pay to credit card companies until 2030. At that point, both parties will need to renegotiate the terms. This potential cost-saving measure offers hope to small business owners like Ashley Ryan, who are constantly looking for ways to manage expenses in an increasingly challenging economic landscape.

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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