On Tuesday, U.S. District Judge Margo Brodie reportedly dismissed a $30 billion antitrust settlement in which Visa Inc. (NYSE:V) and Mastercard Incorporated (NYSE:MA) had agreed to cap the fees they charge merchants for accepting their credit and debit cards.

The decision could compel Visa and Mastercard to negotiate a more favorable settlement for merchants or proceed to trial, Reuters reports.

Numerous merchants and trade groups, including the National Retail Federation, opposed the agreement, arguing that card fees would still be too high and that Visa and Mastercard would retain excessive control over card transactions.

As per the report, trade groups argued that the settlement would have provided merchants with only minimal and temporary relief, while also complicating their ability to pursue future legal challenges.

Brodie will release a written opinion explaining her reasoning after allowing merchants and the card networks until June 28 to propose redactions.

Visa and Mastercard expressed disappointment with the outcome.

The companies announced the settlement on March 26, aiming to resolve most of the litigation that began in 2005 over "swipe fees" or interchange fees, which merchants pay to accept Visa and Mastercard and are set by the card networks.

The settlement stipulated that the average swipe fee would decrease by at least 0.04 percentage points for three years and remain at least 0.07 percentage points below the current average for five years.

Investors can gain exposure to Visa and Mastercard stock via iShares U.S. Financial Services ETF (NYSE:IYG) and SPDR Select Sector Fund – Financial (NYSE:XLF).

Price Action: V shares are down 0.08% at $273.31 premarket at the last check on Wednesday.