Overview
- Visa and Mastercard proposed lowering interchange fees by about 0.1 percentage point for five years to resolve roughly 20 years of merchant litigation.
- Merchants could choose whether to accept categories of cards such as premium rewards, standard consumer, or commercial, weakening the long-standing Honor All Cards rule.
- Standard consumer card rates would be capped at 1.25% for a defined period, and merchants would gain broader ability to add credit-card surcharges.
- The companies said the deal provides meaningful relief without admitting wrongdoing, while major merchant groups called the cuts minuscule and warned fees could rise after temporary limits expire.
- Approval by the federal court in Brooklyn is required; the dispute centers on swipe fees that the NRF says reached $111.2 billion in 2024, highlighting the potential impact of any changes.