As per the information detailed in the press release, the deal is set to decrease and cap the fees charged by Visa and Mastercard, enabling small and medium-sized enterprises (SMEs) to collectively bargain for rates with the payment processor similarly to how large merchants do on their own.
Interchange rate minimisation, with payment networks decreasing the published and effective rate on S-issued consumer credit and commercial credit transactions at US merchant locations;
Five-year rate cap, with the agreement applying to all US-issued credit programs, including new products required to be accepted under the Mastercard brand. Through this, it aims to deliver merchants the certainty and visibility of their acceptance programs while assisting continued competition within the industry;
Improved methods to manage costs with simplified surcharging and discounting rules, while maintaining core consumer protections and transparency, replacing standards that were updated in 2012.
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