Show summary Hide summary
- What the settlement would change about swipe fees and card acceptance
- Why this matters for credit card rewards
- How this differs from the Credit Card Competition Act
- Practical signs you could encounter at the register
- Scenarios: what could change for cardholders
- Timeline, court process, and whether changes are immediate
- Where to stay informed and actions you can take now
Visa and Mastercard have proposed a revised settlement in a nearly two-decade antitrust fight over interchange, or “swipe,” fees. The deal could reshape which card products merchants accept and whether they add a surcharge at checkout. Here’s a clear breakdown of what the agreement would change and how shoppers who chase rewards might be affected.
What the settlement would change about swipe fees and card acceptance
In the U.S., merchants pay interchange fees each time a customer pays with a credit card. Those fees typically hover around 2% and are split between the issuing bank and the card network to cover processing and fraud protection.
Euphoria season 3: Sydney Sweeney left off set as feud with Zendaya intensifies
Serena Williams GLP-1 ad sparks backlash: weight-loss commercial called irresponsible and dystopian
Issuers use part of those fees to fund rewards. Cards that promise higher points or miles usually carry higher interchange rates.
The proposed settlement would reduce average interchange by roughly 0.1 percentage points for five years. It would also cap standard consumer card rates at 1.25% for eight years if a court approves it.
Most notably, the pact would alter the longstanding rule that forced merchants to accept all card products of a given network. Under the new terms, merchants could choose to accept only certain Visa or Mastercard products.
Merchants might also be allowed to add a processing surcharge—up to 3%—on transactions made with higher-fee premium cards, depending on state laws and network restrictions.
American Express is not included in this settlement and remains outside these proposed network changes.
Why this matters for credit card rewards
Rewards programs rely on interchange revenue. If networks and issuers collect less from merchants, that funding pool could shrink.
- Premium cards (those offering bonus points or travel perks) often carry higher interchange.
- If merchants refuse premium products, consumers may lose easy access to their most lucrative cards.
- Surcharges would directly raise the cost of using certain cards at some stores.
That said, any real impact on reward levels depends on long-term issuer strategy. Banks might absorb smaller fee cuts, reduce perks, or target rewards at specific customer segments.
How this differs from the Credit Card Competition Act
These are two separate tracks. The settlement is a private legal agreement between networks and merchants. It focuses on fees, acceptance by card category, and surcharging inside Visa and Mastercard systems.
The Credit Card Competition Act (CCCA) is proposed federal legislation. It would require many cards to support at least two unaffiliated networks for routing transactions, known as dual‑routing.
The CCCA could force deeper changes to how issuers price cards and might reduce rewards more dramatically than the settlement would.
Practical signs you could encounter at the register
If the settlement reaches implementation, here are actions consumers might notice.
- Signs stating a merchant does not accept certain Visa or Mastercard premium products.
- Checkout prompts that a particular card type carries an extra fee.
- Smaller independent retailers being more likely to limit accepted card products to control costs.
- Large chains may keep broad acceptance to preserve convenience for customers.
State laws vary. Some states limit or ban surcharges, which could block merchant surcharging even if networks allow it. Network rules would also influence how and where surcharges are applied.
Scenarios: what could change for cardholders
- At a corner cafe: The owner may decline premium cards or add a 2% surcharge to cover higher fees.
- Online checkout: Platforms may block specific premium card BIN ranges or show a fee estimate before you confirm payment.
- Travel and big purchases: Merchants with high margins may continue accepting premium cards to protect customer convenience.
Timeline, court process, and whether changes are immediate
Nothing will change at stores right away. The settlement needs judicial review and court approval. Implementation, if allowed, could take many months.
Even after approval, networks and merchants must update systems and communications. Some merchants may act sooner, while others wait to see how courts and regulators respond.
Where to stay informed and actions you can take now
Keep an eye on issuer emails and official statements from Visa, Mastercard, and major banks.
- Check receipts at checkout for surcharges or restricted card notices.
- Ask merchants which card products they accept before paying.
- Consider carrying alternative cards, debit options, or network-agnostic payment methods.
- Monitor state rules on surcharging, which affect whether merchants can add fees.
Merchants will decide their acceptance policies, and you can choose where to spend. Stay tuned to news outlets and your card issuer for updates as the court process unfolds.
