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Visa, Mastercard reach new settlement with merchants. Will it shake up credit-card rewards?

1. Visa and Mastercard settled with merchants to reduce interchange fees. 2. Merchants may decline premium rewards cards, affecting consumer credit usage. 3. Settlement reduces interchange rates by 10 basis points over five years. 4. The agreement groups cards into categories for merchant flexibility. 5. Court approval is pending, but positive sentiment expected for Visa and Mastercard.

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FAQ

Why Bullish?

The settlement potentially alleviates uncertainty, likely stabilizing Visa and Mastercard valuations, hence positively influencing SPY.

How important is it?

The article impacts major financial institutions involved, influencing market sentiment and potentially SPY performance.

Why Short Term?

Positive sentiment likely in the short-term due to the settlement's immediate effects on merchant practices.

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