Visa and Mastercard Just Settled Their Big Card-Fee Lawsuit - Here's Why You Shouldn't Assume You'll Pay Less

If you've seen headlines about a huge Visa and Mastercard settlement over card fees, you might be hoping it means lower costs for your business. Before you get too excited, here's what's actually happening - and why the answer to "will I pay less?" is genuinely "it depends, and maybe not much."

What's Actually Happening

For 21 years, millions of businesses across the U.S. have been in a legal fight with Visa and Mastercard over the fees charged every time a customer pays with a card. Those fees are called swipe fees (or interchange fees), and businesses have long argued they're higher than they should be.

In November 2025, Visa and Mastercard agreed to a settlement to end this fight — a $38 billion deal covering roughly 12 million U.S. merchants. In June 2026, a federal judge gave it preliminary approval, calling it "fair, reasonable, and adequate." Two earlier attempts at a settlement, in 2016 and 2024, were both rejected by courts, so this is already the third try.

What the Settlement Actually Changes

In plain terms, here's what's in the deal:

A small rate cut. Card processing rates would drop by about 0.1 percentage point for five years, and standard consumer credit cards would be capped at 1.25% for eight years. For comparison, merchants paid an average of 2.35% in card fees in 2024 — so this cap mostly applies to already-cheaper cards, not the expensive rewards cards.
The "accept every card" rule goes away. Right now, if you accept Visa or Mastercard at all, you have to accept every version of it — including the expensive premium and rewards cards. Under the settlement, businesses would gain the right to decline certain higher-cost card categories.
A new right to add a card fee. Businesses would be allowed to add a surcharge on certain Visa credit card purchases capped at either 3% or your own actual cost of accepting the card, whichever is lower. (This is different from a Cash Discount Program, which is a separate, already-legal way many businesses use today to offset card fees.)

Why Big Retailers Are Now Calling the Deal "Unconstitutional"

Here's the part that makes this genuinely uncertain: this settlement isn't a done deal yet, and some of the biggest names in retail don't like it.

In September 2026, Walmart, Circle K, and a group called the National Association of Convenience Stores filed objections in court. Their argument: businesses are being forced into this settlement with no way to opt out, and they say that violates their legal right to due process. Walmart alone filed a 299-page objection. Separately, hundreds of other merchants have asked the judge to reject the settlement entirely, arguing the savings are too small and too temporary to be worth giving up their right to sue over this issue again in the future.

The judge has given the other side until mid-October 2026 to respond. Given that two previous settlement attempts already got thrown out, it's genuinely unclear whether this one will survive in its current form.

Why You Shouldn't Assume You'll Automatically Pay Less

Even if the settlement goes through exactly as written, a few honest realities are worth knowing:

The rate cut is small. A 0.1 percentage point drop on a $50 sale saves you about a nickel. It's not nothing, but it's not the kind of number that changes your monthly bottom line on its own.
The cap only applies to "standard" cards. Premium and rewards cards, often the most expensive ones to accept, aren't covered by the 1.25% cap.
Savings aren't automatic. Nothing about this settlement guarantees your actual processor lowers what you pay. Processors can still adjust other fees, and the settlement doesn't stop that.
The final terms could still change, or the whole thing could be sent back for another round of negotiation, just like it was in 2016 and 2024.

What You Can Actually Do Right Now

Instead of waiting around for a settlement that may or may not lower your costs, the more useful move is to check what you're actually paying today. Most business owners have never really looked closely at their own processing statement.

A few things worth checking on your next statement:

What's your actual average rate not the rate you were quoted when you signed up, but what you're really paying now? Our free processing fee calculator can help you estimate this in a couple of minutes.
Are you being charged extra for anything you don't recognize?
Is your business currently able to add a small fee for card payments, and would that make sense for you?