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Visa Inc. (NYSE:V) announced Monday it has reached a proposed settlement to resolve claims brought by U.S. merchants in the long-running "In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation." The settlement, which also involves Mastercard and other defendants, addresses claims from the injunctive relief class and is subject to court approval. The financial services giant, with a market capitalization of $643 billion and annual revenue of $40 billion, has maintained strong financial performance despite ongoing litigation challenges. InvestingPro data shows Visa trading near its Fair Value, with a financial health score rated as "GOOD."
According to a press release statement included in a Securities and Exchange Commission filing, the proposed settlement outlines several key terms for U.S. merchants accepting credit card payments. Merchants will gain expanded options to surcharge customers using credit cards, including the ability to apply surcharges even if they do not surcharge other credit networks.
The agreement allows merchants to choose whether to accept U.S. credit cards in specific categories, including commercial, premium consumer, and standard consumer cards. The settlement also provides for a reduction of the U.S. combined average effective credit interchange rate by 10 basis points for five years.
Additionally, the settlement will cap posted U.S. credit interchange rates for five years, and standard U.S. consumer credit rates will be capped at 125 basis points during the term of the agreement. Merchants of all sizes will have access to a new education program focused on payment acceptance and cost management.
Visa stated that the settlement agreement is subject to approval by the court. The full text of the settlement agreement is attached as an exhibit to the SEC filing.
This information is based on a press release statement contained in a Securities and Exchange Commission filing.
In other recent news, Visa Inc . reported its fourth-quarter 2025 earnings, showing a slight beat on both earnings per share (EPS) and revenue expectations. The company posted an EPS of $2.98, just above the forecast of $2.97, and revenue for the quarter reached $10.7 billion, surpassing the anticipated $10.61 billion. In addition to the earnings announcement, UBS raised its price target for Visa from $415 to $425, maintaining a Buy rating. This adjustment follows Visa’s fiscal year 2026 guidance, which projects low double-digit foreign exchange neutral net revenue growth. These developments highlight a positive growth outlook for the company.
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