Visa, Mastercard reach new deal—here’s what it means for you

After more than 20 years of courtroom battles, Visa and Mastercard have reached a new settlement with US merchants who accused them of overcharging for credit card processing fees.

The agreement follows a judge’s rejection of an earlier $30 billion deal that was deemed too small to make a difference.

What changes under the new deal?
The revised settlement requires Visa and Mastercard to lower swipe fees, typically 2% to 2.5%, by 0.1 percentage point for five years. 

It also caps standard card fees at 1.25% for eight years and gives merchants more flexibility to add surcharges or choose which types of cards to accept.

Merchants could now decide whether to accept certain card categories, including rewards and commercial cards.

What this means for you?
For everyday shoppers, the effects could be mixed. Some businesses may pass along savings by keeping prices steady, while others could start charging extra for card payments.

Merchant opposition remains
Retailers argue fees remain too high, noting swipe charges soared to $111.2 billion in 2024—four times higher than in 2009.

Industry and legal outlook
Visa and Mastercard maintain that the accord provides meaningful relief, though neither admitted wrongdoing. Judge Margo Brodie, who called the prior deal’s savings “paltry,” must still approve the new settlement.