Visa, Mastercard reach swipe-fee settlement: How it'll affect your wallet

Core Viewpoint - Visa and Mastercard have proposed a settlement to reduce the interchange fees that merchants pay, which could alleviate some inflationary pressures on consumer prices [1][2][3] Summary by Sections Settlement Details - The proposed settlement aims to lower swipe fees by approximately 0.1% on most U.S. credit card purchases for five years, ending two decades of litigation [3][13] - This reduction translates to a savings of 0.1% per transaction for merchants, potentially benefiting both retailers and consumers across millions of purchases [3] Industry Impact - The National Retail Federation (NRF) claims that swipe fees are a significant operating expense for retailers, contributing to an increase in consumer prices by over $1,200 annually for the average family [6] - The NRF argues that the proposed reduction is insufficient, as it only slightly rolls back the average swipe fee of 2.35% charged to merchants in 2024 [7] Merchant Sentiment - The National Association of Convenience Stores (NACS) has expressed that the settlement should be rejected, stating it may not benefit merchants and could grant credit card companies legal immunity to raise fees [8] - Visa and Mastercard assert that the settlement will provide merchants with more flexibility in payment acceptance and reduce costs [11][10] Legal Context - The settlement is pending approval from a federal judge in the Eastern District of New York and aims to resolve ongoing litigation regarding interchange fees and merchant rules [13][14] - The changes to the fee system and card-acceptance rules are not expected to take effect until the court approves the settlement, anticipated in late 2026 or early 2027 [15]