Visa and Mastercard have reached a proposed settlement with U.S. retailers to reduce credit card merchant fees, marking the end of a two-decade legal battle over alleged price-fixing.
Visa and Mastercard forge deal to end long-term dispute with merchants https://t.co/4H0jpD7mfS
— Financial Times (@FT) November 10, 2025
The deal, announced Monday and subject to court approval, would cut interchange fees by 0.1% over five years and allow merchants to add surcharges or refuse premium cards that carry higher processing costs.
Retailers have long criticized the companies for imposing excessive fees, which have risen nearly 70% since the COVID-19 pandemic, according to the National Association of Convenience Stores.
Both Visa and Mastercard said the settlement provides “meaningful relief and flexibility” to small businesses, while denying any wrongdoing.
The National Retail Federation, however, dismissed the deal as “window dressing,” arguing the reduction is too small to make a real impact and calling for Congress to step in.
If approved, the agreement could reshape how businesses manage card payments and consumer rewards programs.
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TIPP Staff
