09:11 AM EDT, 03/26/2024 (MT Newswires) -- (Updates with more details on the settlement's conditions and comments from Visa and Mastercard ( MA ).)

Visa (V) and Mastercard ( MA ) have reached an antitrust class action settlement with US merchants that includes a rate rollback and a five-year rate cap that will deliver nearly $30 billion in near-term swipe fee savings.

Visa and Mastercard ( MA ) must also enable competitive pricing and increase small merchants' negotiating power for lower swipe fees, as well as allocate $15 million to educate merchants on how to effectively utilize the rule changes, law firm Hilliard Shadowen said Tuesday.

"This agreement brings closure to a long-standing dispute by delivering substantial certainty and value to business owners, including flexibility in how they manage acceptance of card programs," Mastercard ( MA ) Chief Legal Officer Rob Beard said in a statement.

"By negotiating directly with merchants, we have reached a settlement with meaningful concessions that address true pain points small businesses have identified," said a Visa spokesperson in a separate statement.

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