Visa and Mastercard Reach $6.2 Billion Settlement on Card Fees

The transcript discusses the impact of the financial crisis on banks, particularly Visa and MasterCard, which were once owned by banks but are now independent and highly valuable. It explains the issue of swipe fees charged by Visa and MasterCard, which merchants find too high, leading to a lawsuit 13 years ago. The settlement process has been lengthy, with previous settlements being rejected. The current settlement is still pending approval. The transcript also touches on the implications for mobile payments and the ongoing issues with interchange fees. The settlement's impact on retailers is based on payment volume, with some opting out.

What major change occurred to Visa and MasterCard after the financial crisis?

• They merged into a single entity.

• They became independent companies.

• They stopped charging swipe fees.

• They were acquired by new banks.

What was the main reason merchants were unhappy with Visa and MasterCard?

• Frequent technical issues with their systems.

• Limited availability of their services.

• Lack of customer support.

• High swipe fees charged per transaction.

Why was the 2012 settlement in the swipe fee lawsuit rejected?

• It was deemed too favorable to the banks.

• The judge found it unfair due to certain rules and stipulations.

• It did not include all affected parties.

• The settlement amount was too low.

How does the lawsuit impact other types of payment processors?

• It has no impact on them.

• It directly changes their fee structures.

• It forces them to merge with larger companies.

• It provides a basis for further legal challenges.

What factor determines the benefit a retailer receives from the settlement?

• Their geographical location.

• Their payment volume.

• Their annual revenue.

• The number of stores they operate.