Americas Payment Technology Merchant Litigation Settlement

A federal judge has granted preliminary approval for a proposed settlement in the Visa and Mastercard merchant litigation. Analysts expect the settlement, which includes moderate interchange fee adjustments, to have a minimal negative impact on the networks.

Key Takeaways

• 1.A federal judge granted preliminary approval to a merchant litigation settlement involving Visa and Mastercard.
• 2.The settlement includes interchange caps, a 10bps reduction to average effective interchange rates for five years, and increased merchant flexibility regarding card acceptance.
• 3.Analysts view the development as an incremental positive, expecting minimal impact on the health of the U.S. credit card ecosystem for Visa and Mastercard.

Table of Contents

• Background
• Valuation and Risks
• Disclosure Appendix
• Reg AC
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Price target and rating history chart(s)
• Regulatory disclosures
• Disclosures required by United States laws and regulations
• Additional disclosures required under the laws and regulations of jurisdictions other than the United States
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures