Why Credit-Card Swipe Fees Are So Hotly Contested: QuickTake

Every time a credit or debit card is swiped or a website’s “buy” button is clicked, a series of events moves money from consumer to merchant. The process cost retailers more than $170 billion in fees last year — and banks, payment networks (such as Visa Inc. and Mastercard Inc.) and payment processors fight intensely for a share of that. Retailers have been pushing back, and on March 26, Visa and Mastercard agreed to cap so-called swipe fees as part of a settlement to end a legal fight that’s lasted almost two decades.

1. What’s a credit-card swipe fee? ...