Visa and Mastercard Settlement: What May Change

Where the settlement stands

A federal judge in Brooklyn gave the revised settlement between Visa, Mastercard and a class of merchants preliminary approval in June 2026, finding that it provides more extensive relief than an earlier version the court rejected in 2024. The case dates to 2005. In October 2026 Visa and Mastercard filed papers asking the court to grant final approval, while large merchants and trade groups, including Walmart, the National Retail Federation and the National Association of Convenience Stores, have objected. The convenience store association has said it would appeal if final approval is granted. Until the court rules and any appeals end, none of the changes are in force, and today's card network rules still apply.

More on the settlement: Surcharging premium cards under the card settlement · Visa-Mastercard settlement payouts

What the proposed settlement would change

As reported by Payments Dive, the settlement would trim credit card interchange rates by 10 basis points, which is 0.10 percentage points, for five years, and set a 1.25% interchange rate for standard consumer credit cards for eight years. It would also end the strict form of the honor all cards rule, so a merchant could decline some higher-cost premium and commercial Visa and Mastercard credit cards while still accepting others. Merchants would gain new room to surcharge premium and commercial cards, up to 3%, and to offer discounts that steer customers toward lower-cost cards. State surcharge laws would still apply.

What it would not change

The reported terms cover interchange and network rules. They do not set your processor's markup, your monthly or annual fees, your equipment costs, or the terms of your processing agreement. American Express is not a party to the case. The case concerns card acceptance in the United States; if you process in Canada, Canadian interchange rates and rules are set separately. Some industry voices also doubt that many merchants will actually turn away premium cards, since customers who carry them may expect to use them and checkout lines slow down when a card is refused.

Will a lower interchange rate reach your statement?

Interchange is only one part of what you pay, and you only see a change in it if your pricing passes it through. On interchange-plus pricing, interchange is billed at cost and the processor's markup is shown separately, so a lower rate should show up on your statement. On a flat or tiered rate, interchange is folded into one number, and the rate does not have to move when interchange does. Your agreement decides which applies, and no one is required to call you about it.

How pricing models handle rate changes: Interchange-plus vs flat rate when interchange moves · Interchange-plus vs flat rate vs tiered pricing

What it may mean for small, mid-sized and enterprise businesses

For a small business, the first question is simply how you are priced: on a flat rate, a lower interchange rate may never appear on your bill unless you ask. For a mid-sized business with steady credit card volume, it is worth knowing how much of that volume is on premium and commercial cards, because that share decides whether new surcharge or acceptance options would matter to you, and whether a pass-through price makes the reported interchange change visible. For an enterprise or multi-location merchant, the work is operational: check that every terminal, online checkout and invoicing tool could identify premium and commercial cards and apply any fee or discount the same way in every state, review contracts for how interchange changes are passed through and with what notice, and ask for interchange reported by card type, location and channel so any change can be measured.

What to do now

1. Find your pricing model on your agreement or statement: interchange-plus, flat rate or tiered. 2. Work out your effective rate: total processing fees for a month divided by total card sales for the same month. 3. Ask your processor for your card mix, including the share of premium rewards and commercial cards. 4. Ask in writing: if interchange goes down, will my cost go down with it, and when? 5. Do not change your surcharge or acceptance policy until the settlement is final and you have checked your state's rules.

We will read your statement with you

CELER Merchants is an independent agent, not a processor or a law firm. Send us a recent statement and we will show you how you are priced, your effective rate from your own numbers, and which questions to put to your processor about interchange changes. The review is free and there is no obligation. This article is general information, not legal advice.

Start here: Free statement analysis · Contact CELER Merchants