After nearly two decades of legal proceedings, Visa has reached a landmark settlement with U.S. merchants, more than 90% of which are small businesses. Let’s discover the impact of the Visa settlement on small businesses.
How does this agreement impact the industry?
- Lower Interchange Rates: The settlement will reduce credit interchange rates for U.S. merchants, providing much-needed relief. Importantly, these rates will not increase.
- Five-Year Cap: Merchants can breathe a sigh of relief as the agreement caps the reduced credit interchange rates for a duration of five years. This unprecedented level of cost certainty ensures stability and predictability for businesses1.
- Flexibility at the Point of Sale: Summit Payments understands that flexibility matters. The settlement gives merchants greater control, allowing them to steer customers toward preferred payment methods. Moreover, businesses now have more flexibility when adding surcharges, which helps them effectively control costs.
- Educational Programs: Summit Payments is committed to educating small businesses about payment acceptance options. We’ll guide you on how to navigate these changes and make informed decisions for your merchant account.
How Do Consumers Benefit?
Consumers can expect positive outcomes as well:
- Potentially Lower Prices: With reduced interchange rates, merchants may pass on the savings to consumers. This potentially results in reduced costs for both products and services.
- Premium Credit Cards: Consumers using premium credit cards may experience changes. Some retailers might charge slightly more for these cards, as they cost more for card issuers to process2
Contact Summit Payments Today
Have questions about how the Visa settlement impacts your merchant account? Call us at (720) 789-7928 or complete our contact form. Let’s navigate these changes together and ensure your business thrives in this new landscape! Summit Payments is a trusted merchant services brokerage group that has been championing small businesses since 2021. Our mission is to level the playing field in an industry that often leaves entrepreneurs feeling overwhelmed and underserved.