Key insights: Pushback on fees, BNPL and new technology are shifting how consumers shop and make payments. What's at stake: Swipe fees for credit cards and debit cards totaled $187.2 billion in 2024, up from $172 billion in 2023. Forward look: Agentic commerce and crypto will also draw consumers to new payment options in the new year. Consumer payment trends such as pushback on interchange fees, the rise of buy now/pay later, crypto payments and agentic commerce are set to shape payments in 2026. Th ...

If you have tapped to pay with a credit card, you’ve likely noticed that some merchants add a small fee for paying with credit instead of debit or cash. But what if the fee you paid depended on exactly what brand of credit card you had in your wallet? That’s a scenario consumers may face after a settlement between credit giants Visa and Mastercard and U.S. merchants was recently announced. The settlement has not been approved by the courts, and according to a Wall Street Journal report, it will likely be ...

Core Points - Visa and Mastercard have proposed a settlement in their long-standing legal dispute with merchants regarding interchange fees, which could affect consumer transactions at the point-of-sale [1][5] - The proposed settlement introduces changes to the "honor all cards" rule, allowing merchants to selectively accept different tiers of Visa and Mastercard products [2][5] Group 1: Legal Dispute and Settlement - Visa and Mastercard have been involved in litigation with a class-action group of merchants for nearly 20 years over interchange fees [1] - A previous settlement was rejected by the judge, prompting Visa and Mastercard to revise their proposal [1] Group 2: Impact on Merchants - The "honor all cards" rule requires merchants to accept all types of Visa and Mastercard products, which has caused frustration among merchants due to the higher costs associated with premium cards [2][3] - Premium cards, such as the Chase Sapphire Reserve and Citi Strata Elite, incur higher interchange fees for merchants, with the Visa Infinite card costing 15 basis points (0.15%) more than a mid-tier Visa Signature card [4] Group 3: Consumer Implications - Under the new settlement, merchants may choose to decline high-reward credit cards at checkout, potentially leading to denial for consumers using these cards [5] - Merchants could also impose surcharges on customers to offset the higher costs of accepting premium cards, affecting consumer behavior and preferences [5][6]

Co-branded cards, and those closely tied to air travel, have been lucrative for both airlines and financial firms. Annual fees are one source of revenue. But the real money comes from the interchange fees collected on transactions https://t.co/i0GYnROBaj ...