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Visa and Mastercard Unveil Revised Swipe-Fee Deal Allowing Merchants to Reject Premium Cards

Court approval is required before any checkout changes occur.

Overview

  • Visa and Mastercard proposed a new settlement in their two-decade interchange case after a prior deal was rejected.
  • The plan would trim average credit card interchange by about 0.1 percentage point for five years and cap standard consumer rates at 1.25% for eight years.
  • Merchants could choose not to accept higher‑tier Visa or Mastercard products or add surcharges of up to 3% where permitted by law and network rules.
  • Major retail groups, including the National Retail Federation, publicly opposed the proposal as insufficient.
  • The deal excludes American Express and debit cards, and any effects on checkout or rewards would occur only if a Brooklyn federal court approves the agreement.