Merchants Secure Greater Authority Over Card Acceptance in $38 Billion Visa-Mastercard Agreement, Though Critics Highlight Ongoing Concerns

Visa and

have agreed to a historic $38 billion settlement with U.S. retailers, resolving decades-long disputes over credit card transaction fees and potentially concluding a 20-year antitrust conflict. Announced on November 10, the deal features lower interchange fees, more lenient card acceptance policies, and limits on standard consumer card rates. However, merchant organizations have criticized the settlement, claiming it within the payments sector.

Under the agreement,

by 0.1 percentage points (from 2.35% in 2024) for a period of five years, and to cap standard consumer credit card rates at 1.25% for eight years. Retailers will also have the option to decide whether to accept cards from certain categories—such as commercial, premium rewards, or standard consumer—without being obligated to accept all cards from a particular network . This adjustment may let merchants decline high-fee premium cards, like Chase's Sapphire Reserve or Capital One's Venture X, or add surcharges up to 3% for their use .

Industry analysts caution that these changes could disrupt the credit card rewards landscape. Customers who use premium cards and typically spend more than average may encounter new obstacles at checkout if merchants choose to surcharge or refuse these cards. "If premium cards become pricier to use at checkout, it could slow the growth of rewards and perks that consumers have grown accustomed to," said John Cabell, a payments expert at J.D. Power . Nevertheless, some experts, such as Brian Kelly from The Points Guy, believe that retailers are unlikely to turn away big spenders, since the potential loss in revenue from rejecting premium cards could surpass any savings on fees .

The agreement also allows merchants to add surcharges to credit card sales—a practice already permitted under current regulations, but now with broader application. These surcharges could hit small businesses especially hard, as they often operate with slim profit margins. The National Retail Federation (NRF)

, describing the fee reduction as "a tiny portion" of the typical 2.35% swipe fee and warning that it does not tackle anti-competitive behavior.

Visa and Mastercard have not acknowledged any wrongdoing in the settlement. Both companies stated that the agreement delivers "substantial relief" to both merchants and consumers and increases flexibility

. Still, the National Grocers Association and other organizations argue that the settlement preserves the payment giants’ ability to raise fees in the future, which could mean ongoing financial pressure for retailers .

The settlement is now pending approval from U.S. District Judge Margo Brodie, who previously rejected a $30 billion proposal in June 2024 for being inadequate. If approved, the new rules could be implemented as soon as late 2026 or 2027

. Meanwhile, legislators are still advocating for broader changes, such as the bipartisan Credit Card Competition Act, which would require credit cards to support dual-network routing to lessen dependence on and Mastercard .

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