PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

The Visa and Mastercard Merchant Settlement Is Back on the Table

By Wesley Grant
June 10, 2026
in Analysts Coverage, Credit, Merchant
0
0
SHARES
0
VIEWS
Share on LinkedIn
visa mastercard settlement

Business people in a meeting

After decades of litigation and negotiations, a judge has approved the latest version of the settlement between Visa, Mastercard, and merchants over interchange fees.

A previous attempt at a settlement stalled two years ago after a judge ruled that the proposed $30 billion agreement didn’t go far enough to compensate merchants, who have long complained about the fees charged on credit card transactions.

The latest version increase the settlement value to $38 billion and has received preliminary approval from a U.S. District Judge in New York. The judge said the settlement, which applies to over 12 million merchants, was “fair, reasonable, and adequate.”

Honor All Cards

Under the new deal, Visa and Mastercard agreed to lower interchange fees by 0.1 percentage points for five years. According to data from the Merchants Payments Coalition, the average swipe fee was 2.36% last year, and total fees increased year over year.

Another important aspect of the settlement is that merchants will now be able to choose whether to accept certain types of cards. In the past, merchants were generally required to honor all cards from a given network or none at all, meaning they had to accept higher-fee rewards cards alongside standard cards.

A Bird in the Hand

While Visa and Mastercard have backed the new settlement, many merchants have raised objections. After the deal was proposed in November, a Walmart-led group argued that it still didn’t go far enough to compensate merchants. However, it will be difficult to come to any agreement that appeases all parties at this point.

“The one thing that jumped out at me was the quote from Judge Cogan at the end: ‘But the question is not whether ​the amended settlement constitutes the best ⁠possible recovery, end stop – it’s whether the amended settlement constitutes the best possible recovery in light of what can be gained and lost through trial,'” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research,

“As we’ve seen since this suit was filed in 2005, anything short of the end of all merchant card fees will continue to draw objections from merchants and their trade associations,” he said. “The judge is setting the stage here to deflect further objections from both sides and bring this 20+ year lawsuit to a conclusion, while at the same time sending a message to merchants that a bird in hand is worth two in the bush.”

0
SHARES
0
VIEWS
Share on LinkedIn
Tags: CreditInterchange FeeMastercardMerchantSwipe FeeVisaVisa Mastercard Settlement

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    fraud consortium

    Why Breaking Down Data-Sharing Barriers Is Critical to Fighting Fraud

    October 30, 2026
    hardware-bound payment card authentication

    Why Authentication Is a Revenue Strategy, Not Just a Fraud Control

    October 29, 2026
    credit union small business banking

    How Credit Unions Can Win Over Small Businesses

    October 28, 2026
    global stablecoin adoption

    A Global View: Why Stablecoins Look Different in Every Market

    October 27, 2026
    stripe stablecoin

    Stablecoins and the Threat to Traditional Bank Deposits

    October 26, 2026
    global cross-border payment infrastructure

    A New Payment Rail Is Not a Global Payment Solution

    October 23, 2026
    stablecoins in banking

    As Stablecoins Mature, Financial Institutions Face a Crossroads

    October 22, 2026

    Automation to Accountability: Governing AI in Fraud and Disputes 

    October 21, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result