Your points card might not be welcome everywhere anymore
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Visa/Mastercard may cut swipe fees a hair (about 0.1%), which helps stores but wont show up as obvious price drops for shoppers
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Stores could get more power to favor cheaper cards and even say no to high-reward, high-fee cards, so you might need a backup card
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Expect to see more surcharges or cash/debit discounts as merchants get more freedom to nudge you toward cheaper payment methods
Every time you tap a Visa or Mastercard, the store is paying roughly 2%2.5% of the transaction to the card networks and the bank behind your card. After 20 years of legal fighting, the Wall Street Journal recently reported,Visa and Mastercard are now close to another settlement with merchants that would trim those fees a bit and, more importantly, give stores more flexibility to say no to certain higher-cost cards. Thats the part consumers will actually feel.
Whats actually changing?
1. Small fee reductions for stores
Visa and Mastercard would shave the fee built into card payments by about 0.1 percentage point. Not all at once though, it would be spread out over time.
Thats real money for big retailers processing billions a year, but its not a dramatic cut, which is why merchant groups are already saying it still lets the card networks keep fixing swipe fees.
2. Stores could sort cards by cost
Right now, if a store takes Visa, it generally has to take all Visa credit, including the rewards cards that cost the most to accept. The new structure being discussed would let stores treat cards on an individual level. So, cards with heavy rewards, no-rewards, and commercial cards could be separated.
That opens the door for a store to prefer cheaper cards or even refuse the priciest ones. Consumers who love high-rewards cards are the group most likely to bump into sorry, we dont take that one at smaller or lower-margin businesses.
3. More room for surcharging or steering
The reporting also says surcharging is part of the talks. Surcharging is when the store tells shoppers upfront that since youre paying with a credit card, were adding a fee to your transaction.
That matters because merchants have complained for years that they were blocked from nudging shoppers toward cheaper payment methods.
If those rules get looser, you could see more signs at checkout that say X% added for premium credit or signs pushingyou towardscash or debit card discounts. Weve already seen this after earlier settlements and court rulings and this could normalize it further.
Why are Visa and Mastercard doing this now?
This is basically the sequel to a long antitrust fight in federal court in New York over credit-card fees and rules. Earlier efforts included a big settlement meant to save merchants around $30 billion over several years, but a judge rejected a version of that in 2024, which sent everyone back to the table. Card networks keep denying wrongdoing, but settling gives them certainty and heads off more years of expensive litigation.
What this means for consumers
You might see more payment friction. The U.S. has been spoiled by near-universal card acceptance. If merchants get more power to reject high-fee cards, you could run into the occasional we only take basic Visa/Mastercard or debit. This could end up forcing you to keep a backup card in your wallet.
Premium rewards could get pressure. Rich travel cards tend to carry higher fees because those rewards have to be paid for somehow. If more merchants start pushing back on those cards, banks and networks may have to rethink how rich certain rewards offers can be in the future. That wont be immediate, but its the logical downstream effect.
Price effects will be subtle. A 0.1-point cut is helpful for retailers, especially small ones, but its not the kind of drop that turns into a big, obvious price decrease for shoppers. At best, it will be the slow drip of we had to raise prices because costs went up.
Posted: 2025-11-10 17:28:16
