The $30 billion settlement that was reached on Tuesday between merchants and credit card giants Visa and Mastercard could make it more expensive to use premium credit cards.
The rate tables that were revealed as part of the settlement show that customers who use cards like Visa Infinite, Chase Sapphire Reserve and Mastercard World Elite will need to shell out more in swipe fees that merchants are charged by the credit card companies.
A $100 transaction at a restaurant would result in swipe fees of $2.60 for a diner using a Visa Infinite card as opposed to $2.10 for someone using a regular Visa rewards card, according to an analysis by Bloomberg News.
Visa Infinite charges an annual fee of up to $525 in exchange for benefits and perks including travel discounts, gym memberships, dining offers and subscriptions to entertainment providers.
The Chase Sapphire Reserve, which comes with a $550 annual fee, includes a welcome offer of a $300 travel credit as well as 60,000 bonus points after spending $4,000 on purchases within the first three months.
Tuesday’s settlement will allow merchants to charge consumers more for using the elite cards — although some may choose not to for fear of a backlash, according to experts.
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Merchants have long complained that Visa and Mastercard have required them to accept all of their credit cards at checkout.
The credit card companies say that the elite accounts encourage shoppers to buy more than they would ordinarily pay due to the enticements and incentives.
But merchants have long complained that they were not permitted to charge elite card holders extra.
Merchants have accused Visa and Mastercard of charging inflated swipe fees, or interchange fees, when shoppers used credit or debit cards, and barring them through “anti-steering” rules from directing customers toward cheaper means of payment.
Swipe fees typically include small fixed fees plus a percentage of total sale amounts, and average about 1.5% to 3.5% per transaction according to Bankrate.com.
Under the settlement, Visa and Mastercard would reduce swipe rates by at least four basis points — 0.04 percentage points — for three years, and ensure an average rate that is seven basis points below the current average for five years.
Both card networks also agreed to cap rates for five years and remove anti-steering provisions.
Merchants will have more discretion to offer discounts, or impose surcharges on cards with higher interchange fees.
Many already warn customers at checkout they will pay more using cards instead of cash.
The fee rollbacks and caps alone are worth $29.79 billion, according to court papers, and Visa estimated that small businesses comprise more than 90% of the settling merchants.
Visa and Mastercard denied wrongdoing in agreeing to settle.
In separate statements, Visa’s North American president Kim Lawrence said the accord addressed “true pain points” identified by small businesses, while Mastercard General Counsel Rob Baird said it gave businesses “substantial certainty.”
Harrods is preparing to take legal action against the estate of its former owner, Mohamed al-Fayed, as the multimillion-pound legal bill for compensating his sexual abuse victims continues to escalate.
Sky News has learnt that the Knightsbridge department store, which has been owned by a Qatari sovereign wealth fund since 2010, plans to file a so-called passing-over application in the High Court as early as next week.
The intention of the application is to secure the removal of Mr al-Fayed‘s estate’s current executors, and replace them with professional executors to administer it instead.
Professional executors would be expected to investigate the assets and liabilities of the estate, while Harrods insiders claimed that the current executors – thought to be close family members of the deceased billionaire – had “ignored” correspondence from its lawyers.
Sources close to Harrods said the passing-over application paved the way for it to potentially seek to recover substantial sums from the estate of the Egyptian tycoon as it contends with a compensation bill likely to run to tens of millions of pounds.
In a statement issued to Sky News on Saturday, a Harrods spokesperson said: “We are considering legal options that would ensure that no doors are closed on any future action and that a route to compensation and accountability from the Fayed estate remains open to all.”
Mr al-Fayed is believed to have raped or sexually abused hundreds of women during his 25-year tenure as the owner of Harrods.
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He died in 2023, since when a torrent of details of his abuse have been made public by many of his victims.
Earlier this year, Sky News revealed details of the compensation scheme designed by Harrods to award six-figure sums to women he abused.
In a form outlining the details of the Harrods redress scheme overseen by MPL Legal, which is advising the department store, it referred to the potential “for Harrods to recover compensation paid out under this Scheme from Mohamed Fayed’s estate”.
“You are not obliged to assist with any such claim for recovery,” the form told potential claimants.
“However, if you would be willing to assist Harrods including potentially by giving evidence against Fayed’s estate, please indicate below.”
This weekend, there appeared to be confusion about the legal representation of Mr al-Fayed’s estate.
In March, the BBC reported that Fladgate, a UK-based law firm, was representing it in an article which said that women who worked for him as nannies and private air stewards were preparing to file legal claims against the estate.
This weekend, however, a spokesman for Fladgate declined to comment on whether it was acting for Mr al-Fayed’s estate, citing confidentiality restrictions.
A source close to the law firm, meanwhile, insisted that it was not acting for the estate.
KP Law, another law firm acting for some al-Fayed abuse survivors, has criticised the Harrods-orchestrated process, but has itself faced questions over proposals to take up to 25% of compensation awards in exchange for handling their cases.
Harrods insiders said there was a growing risk that Mr al-Fayed’s estate would not be responsibly administered given that the second anniversary of his death was now approaching.
They added that as well as Harrods itself seeking contribution for compensation paid out for Mr al-Fayed’s abuse, its legal action would also potentially open way for survivors to claim directly against the estate.
Victims with no direct connection to Harrods are not eligible for any compensation through the store’s own redress scheme.
Even if Harrods’ passing-over application was approved by the High Court, any financial recovery for the department store would be subject to a number of additional legal steps, sources said.
“The passing-over action would achieve the goals of acknowledgement and accountability from the estate for survivors who don’t have the resource to undertake a passing-over application themselves,” an insider said this weekend.
A father returning home after scattering his wife’s ashes was among the victims of the Air India crash, leaving his two young children suddenly orphaned.
Flight 171 was carrying 242 people when it struck a medical college hostel less than a minute after taking off from Ahmedabad airport, in western India.
Twenty-nine people on the ground were killed, taking the total number of victims to 270. A hospital official confirmed 270 bodies have been recovered from the crash site, but DNA testing is being conducted to identify the bodies.
Among the victims, 37-year-old Arjun Patoliya had been visiting India to fulfil his wife Bharti’s “final wish” to be laid to rest in her hometown of Gujarat.
Bharti had died just over two weeks ago, following a “courageous battle with cancer”.
A GoFundMe page, set up to raise funds for their two children, says: “Arjun left to bid farewell to his wife, never returned to the children they both raised.
“Now, these two beautiful young girls have been left without parents – their world turned upside down in just over two weeks.”
A fundraiser, which has topped more than a quarter of a million pounds, confirms all money raised will go directly into a legal trust, “to ensure every penny is dedicated to the girls’ needs”.
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India’s aviation minister has said a government panel reviewing the crash will complete its assessment in three months.
Ram Mohan Naidu said the government has also ordered “extended surveillance” of Boeing 787 planes. Air India operates 33 Boeing 787s, while rival airline IndiGo has one, according to data from Flightradar24.
Mr Naidu said the plane started descending after reaching 650 feet.
Every theory as to what happened will be looked into, he said. But in the meantime, he has instructed the airline to assist the families of passengers to ensure there is no delay in handing over the bodies of those who died.
Black box has been found
India’s aviation ministry says workers have recovered the digital flight data recorder – one of two black boxes on the plane, from the rooftop of the building where it crashed.
This box has data on engine and control settings, so will be able to show if there was a loss of engine power or lift after takeoff.
The investigation will initially focus on the engine, flaps and landing gear, a source told Reuters on Friday.
A possible bird-hit is not among the key areas of focus, the source said, adding that teams of anti-terror experts were part of the investigation process.
There is no information yet on the cockpit voice recorder, the other black box, which will be a crucial part of understanding what caused the plane to crash.
Roads have been flooded and a landslip has disrupted trains as the UK was hit by tens of thousands of lightning strikes during thunderstorms – with severe weather warnings in place for large parts of the country.
It follows the hottest day of the year on Friday, which saw a high of 29.4C (84.9F) in Santon Downham in Suffolk.
The Met Office has issued an amber weather warning until 6pm across the South West, North East and North of England, Wales and much of Scotland.
It said there had been more thann 30,000 lightning strikes during the night, with the “vast majority” over the sea.
The Met Office has warned some areas could see 30-50mm of rain in a few hours, while a few locations could reach up to 80mm.
At the same time, strong wind gusts and hail accompanying the storms could potentially bring road flooding, difficult driving conditions, power cuts and flooding of homes and businesses.
The Environment Agency urged the public not to drive through flood water, reminding drivers that “just 30cm of flowing water is enough to move your car.”
A further yellow warning is in force in the eastern half of Northern Ireland from 6am to 6pm on Saturday, while a similar warning has been in place across the South East of England overnight following an amber alert on Friday.
Image: Thunderstorm warnings are in place until Saturday evening. Pic: Met Office
Kent experienced heavy rainfall overnight, with flooded roads in parts of Dover, while a fire in a residential building in St Leonards-on-Sea on Friday night was likely caused by a lightning strike, the East Sussex Fire and Rescue Service say.
Devon received five flood warnings overnight by the Environment Agency, alongside 46 flood alerts in the South West, South East and Midlands.
A further six flood alerts have been put in place by Natural Resources Wales in South Wales.
National Rail said a landslip had stopped all services between Exeter St Davids and Okehampton, with the weather conditions meaning it is not safe for engineers to reach the site. Disruption is expected until around 1pm.
Other rail operators also warned customers to check for updates on services on Saturday morning.
Heathrow Airport apologised to passengers late on Friday night for flights delayed by “adverse weather conditions”.
Sky News weather producer Steff Gaulter said: “The most active thunderstorms are over parts of Wales, Northern Ireland, Northern England and Scotland, and some are still bringing localised downpours and strong winds.
“The storms will continue northwards, becoming largely confined to Northern Ireland and Scotland by the afternoon. Elsewhere will see a mixture of sunshine and showers, with the showers tending to ease during the day.
“Then from tomorrow an area of high pressure will start to stretch towards us, and the weather next week is looking far calmer and quieter.”
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Despite the risk of heavy showers and thunderstorms, not everyone will see rain during the day, with the driest and brightest weather expected in the South East, which will remain very warm.
The UK Health Security Agency (UKHSA) has issued its first yellow heat-health alert of the year, active until 8am on Sunday in the east of England, East Midlands, London, and the South East.
Under the UKHSA and the Met Office’s weather-health alerting system, a yellow alert means there could be an increased use of healthcare services by vulnerable people.
A yellow alert warns of a possible spike in vulnerable people accessing healthcare, and health risks for the over-65s and those with conditions such as respiratory and cardiovascular diseases.
While scientists have not assessed the role of global warming in this short-term event, in general they expect more heavy downpours as the climate changes.
That’s largely because hotter air can hold more moisture and so releases more water when it rains.