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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.”

With Post wires

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Sports

Stars ‘steal one,’ revive series hopes with OT win

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Stars 'steal one,' revive series hopes with OT win

After falling into a 2-0 series hole while losing six straight and nine of their past 11 games to the Vegas Golden Knights, the Dallas Stars had to do something in Game 3.

And they did. The Stars snapped their losing skid to the defending Stanley Cup champions, with 20-year-old forward Wyatt Johnston scoring twice, including the winning goal in their 3-2 overtime win Saturday in the Western Conference quarterfinals at T-Mobile Arena.

“We knew the situation coming into Vegas,” said Stars center Tyler Seguin, who finished with an assist. “We know these guys are the champs from last year, and we know how good they are on home ice. … We knew we had to come in here, we had to steal one no matter. Now, we want to steal two.”

Coming close but not being close enough to win games had been the narrative for the Stars entering Game 3.

They opened Game 1 with a 4-3 loss and were within striking distance in Game 2 before an empty-netter from Jack Eichel late in the third period created extra separation in a 3-1 defeat.

Game 3 saw Dallas find its footing early. Johnston scored the opening goal near the halfway point of the first period before Miro Heiskanen doubled the lead to 2-0 a little more than five minutes into the second period.

Having a two-goal lead, however, was short-lived. The Golden Knights tied the score on a pair of second-period goals from Brayden McNabb and Eichel.

Both teams struggled to come up with the winning goal in the third and in overtime. Stars goaltender Jake Oettinger finished with 32 saves and a .941 save percentage for what was his strongest performance in the postseason.

Oettinger’s counterpart, Logan Thompson, was one of the main reasons why the Golden Knights even reached overtime. Johnston’s first goal along with Heiskanen’s salvo that gave the Stars a 2-0 advantage was the product of an attack that went from struggling to find consistency in the first two games of the series to one that showed why the Stars are among the teams that could potentially dethrone the Golden Knights this postseason.

Through the first two games of this series, Thompson had faced 50 shots. The Stars already had 33 shots by the end of the second period before finishing with 46 shots, with Thompson stopping 43 of them.

Johnston was responsible for a game-high eight shots, with his final being the winner that he snuck beneath the crossbar and over Thompson’s shoulder from a side angle to bring the Stars within a game of tying the series.

“I tried a couple low, and it didn’t work,” said Johnston, who led the Stars with 33 goals in the regular season. “So, I tried to throw one up high and I’m lucky enough it worked.”

Stars coach Peter DeBoer reiterated afterward that his team had to be the more desperate club Saturday night.

DeBoer’s logic was simple. The Golden Knights were still going to have a series lead no matter what happened in Game 3. The Stars, on the other hand, had to find a way to avoid going back to Dallas trailing 3-0.

Getting off to an early start. Finding ways to constantly get shots. Making sure the Golden Knights were the ones who struggled to find cohesion at times. These are the details that allowed the Stars to win Saturday, and they’re also the attributes DeBoer said proves the team has shown gradual improvement since the start of the playoffs.

“What I do like about our game is that our game’s building,” DeBoer said. “Game 2 was better than Game 1. Game 3 was better than Game 2. That’s a great sign for me on our group.”

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World

UK to develop hypersonic missiles to catch up with China and Russia by 2030 – report

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UK to develop hypersonic missiles to catch up with China and Russia by 2030 - report

Britain plans to equip its armed forces with a homegrown hypersonic cruise missile by the end of the decade, according to a report.

Military chiefs are under pressure to catch up with China, Russia and the US by developing a weapon capable of flying at speeds higher than Mach 5 – five times the speed of sound, according to The Sunday Telegraph.

The Ministry of Defence wants the missile to be designed and built in the UK and to enter service by 2030.

Plans are at an early stage, the newspaper reported, although there is no decision on whether the missile will be launched from land, sea or air.

It comes after Prime Minister Rishi Sunak pledged to spend 2.5% of gross domestic product on defence by 2030.

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Ballistic weapons can also reach hypersonic speeds but the difference is in manoeuvrability – ballistic weapons generally have fixed paths but the path of a hypersonic weapon can be changed after launch, making it difficult to destroy.

The US, Russia and China are the main players in the hypersonic weapons race but other countries, such as North Korea, claim to have tested hypersonic weapons.

More on Defence

Read more:
Sean Bell: Putin’s ‘undefeatable’ missile was a costly illusion
US tests hypersonic weapon with speeds ‘five times greater than speed of sound’

The development of hypersonic capabilities is part of Pillar Two of AUKUS – a defence and security pact between the UK, Australia and the US.

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Last month the US tested a hypersonic cruise missile on an atoll in the Marshall Islands in a message to its rival in the Pacific – China. It is the latest in a number of hypersonic weapons tests the country has completed in recent years.

A spokesperson for the MoD would not comment in detail on the development of Britain’s hypersonic missile capability, citing national security, but confirmed “hypersonic technologies to further develop UK sovereign advanced capabilities” were being pursued.

“We continue to invest in our equipment to meet current and future threats,” they added.

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Politics

DOJ challenges motion to dismiss Tornado Cash co-founder’s charges

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DOJ challenges motion to dismiss Tornado Cash co-founder’s charges

According to the filing, the DOJ criticized Tornado Cash’s co-founders for inadequate changes to exclude sanctioned addresses.

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