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 the interchange fees by approximately 0.1% on most US credit card transactions for five years, potentially saving retailers and consumers money across millions of purchases [3][8] - The settlement would end 20 years of litigation regarding these fees [3][14] Impact on Retailers - The National Retail Federation (NRF) argues 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 [4] - The NRF has criticized the settlement as insufficient, stating it only represents a small fraction of the average swipe fee of 2.35% charged to merchants in 2024, equating to a rollback of fees by about one year [5][11] Merchant Flexibility - The settlement would provide merchants with more flexibility in accepting payment methods, allowing them to choose which types of cards to accept, although they cannot selectively accept cards from different banks [11][12] - Mastercard claims that the deal will benefit smaller merchants by offering more acceptance choices and reduced costs [6][9] Legal and Regulatory Aspects - The settlement is subject to approval by a federal judge in the Eastern District of New York before it can be finalized, with expectations for approval around late 2026 or early 2027 [13][14] - The ongoing litigation against Mastercard and Visa has been in place since 2005, focusing on how these companies set and enforce credit card swipe fees [14]