Visa, Mastercard reach swipe-fee settlement — Here’s how it will affect your wallet

Visa and Mastercard have recently announced a proposed settlement aimed at reducing the charges that merchants pay to the credit card networks. These fees, known as swipe fees or interchange fees, are typically passed on to consumers through higher prices for goods and services.

The National Retail Federation (NRF) has long argued that these fees contribute to inflation in the US economy, leading to increased costs for households across the country. The settlement between Mastercard and Visa would result in a slight decrease in the fees that businesses pay when customers use their credit cards, potentially saving retailers and consumers money over millions of transactions.

Stephanie Martz, NRF’s chief administrative officer and general counsel, expressed concerns that the planned fee reduction is insufficient, as it only represents a small fraction of the average swipe fee charged to merchants in recent years. The NRF believes that the proposed settlement should be rejected.

The National Association of Convenience Stores (NACS) shares similar sentiments, arguing that the settlement would not benefit merchants or consumers and could potentially give the credit card companies legal immunity to increase fees and engage in anti-competitive practices.

Despite the criticism, Mastercard and Visa defend the settlement, stating that it provides clarity, flexibility, and consumer protections. They believe that the deal will benefit smaller merchants by offering more acceptance options, reduced costs, and simplified rules.

Visa added that the proposed settlement with US merchants of all sizes would offer meaningful relief, flexibility, and control over payment acceptance options. The terms of the deal would also give merchants more power in deciding which cards to accept, allowing them to choose between consumer and business cards, as well as different card types.

The settlement still requires approval from a federal judge in the Eastern District of New York before it becomes final. Once approved, the changes to fee systems and card-acceptance rules are expected to take effect in late 2026 or early 2027.