Payment Radar
Merchants call on judge to reject Visa-Mastercard interchange fee settlement
Nearly 1000 US merchants are urging a federal judge to reject a proposed Visa-Mastercard interchange fee settlement, arguing it fails to provide adequate relief and contains loopholes.
Payment RadarOriginal source: Finextra · linked publisher media; native reuse rights require confirmation 
What changed
Nearly 1,000 US merchants are urging a federal judge to reject a proposed Visa-Mastercard interchange fee settlement. The wholesale fee paid by a merchant’s acquirer to the cardholder’s issuing bank on each card transaction, set by the card network, would be lowered by only 0.1% under the current proposal, effectively returning rates to 2023 levels. Merchants argue the settlement contains loopholes and fails to provide adequate relief from what they view as anticompetitive practices. The proposal was preliminarily approved in June after a previous version was rejected in 2024, but this new wave of objections introduces significant legal uncertainty regarding the future cost structure for payment processing in the US.
Why a business should care
For any US business accepting Visa or Mastercard credit cards, payment processing costs are a direct line item affecting profitability. The proposed settlement’s minimal reduction means that if approved, merchants will see negligible savings on their transaction fees. Conversely, if the judge rejects the settlement, it could trigger prolonged litigation and further delay any meaningful fee adjustments. The outcome will determine whether businesses continue paying current rates or face a period of legal and financial instability while the dispute is resolved.
Who it affects
This development directly impacts US merchants across all sectors, including small and medium-sized retailers, restaurants, supermarkets, convenience stores, and gas stations. Any business that processes card payments through Visa or Mastercard networks is exposed to the potential outcomes of this legal challenge.
What to consider doing
Pull your current merchant service agreement and payment processor statements to identify your exact interchange fee tiers and total monthly processing costs. This baseline data will allow you to quickly calculate the financial impact if fees remain at current levels or shift slightly under the proposed settlement.
Uncertainty and risks
The primary risk is legal uncertainty. The judge has not yet ruled on the settlement, and the merchants’ objections could lead to a complete rejection or a renegotiated terms. There is also uncertainty regarding the duration of a proposed ban on future lawsuits, which merchants find alarming. If the settlement is approved as proposed, businesses face the risk of continued high fees with no immediate relief.
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