Visa, Mastercard to cut fees, let retailers reject cards

"Smaller merchants will gain in this settlement – more acceptance choices, reduced costs and simplified rules," Mastercard said. Photo by Nam Y. Huh/AP Photo/Postmedia files

Visa Inc. and Mastercard Inc. reached a deal with retailers to reduce some of their fees and give merchants more leeway to reject customers who use certain credit cards , including the premium ones that have been surging in popularity.

The proposed settlement — which is meant to bring more than 20 years of litigation to an end — could ultimately save merchants more than US$200 billion, according to Joseph Stiglitz and Keith Leffler, who served as expert economists in the case on behalf of the retailers. That would make it one of the largest-ever class-action settlements of a United States antitrust case.