Crypto to the Rescue as Visa, MasterCard and US Banks Pay $6.2 Billion in Credit Card Fees to Merchants


Merchants Are Looking For Cheaper Way To Accept Payments, Can Crypto Solve the Issue

Recently, in the largest-ever class-action settlement of a U.S. antitrust case, Visa Inc. and MasterCard Inc. agreed to pay between $5.54 billion and $6.24 billion to a class of more than 12 million merchants who accept the payment networks’ cards. The total is in line with sums the companies previously set aside to cover the costs of the litigation.

In the largest-ever class-action settlement of a U.S. antitrust case, Visa Inc. and MasterCard Inc. agreed to pay between $5.54 billion and $6.24 billion to a class of more than 12 million merchants who accept the payment networks’ cards, according to a regulatory filing on Tuesday. The total is in line with sums the companies previously set aside to cover the costs of the litigation.

Every year, about $90 billion goes in process cost (every time buy button on the website or a credit or debit card is swiped) by retailers for which payments networks like Visa and MasterCard, banks and payment processors fight to get a share of.

The payments industry is basically divided into consumer, consumer’s bank, merchant and merchants bank. As for the cost, it is usually 2 percent of a purchase price for a credit card transaction while 24 cents for a transaction with a debit card.

This clearly shows that merchants are looking for cheaper payment options. Though the crypto market is still nascent, cryptocurrencies like Bitcoin have been created with the purpose of eliminating the third parties only.

Redditor, Robbins_Financial shares:

“This is a classic example of why we need to do away with third parties. The transparency is just really minimal. And even if there was transparency, the transaction fees are still always unnecessary. Issues Bitcoin can solve.”

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