Visa and Mastercard Reach $38 Billion Settlement as Merchants Demand Greater Fee Transparency

More than 12 million U.S. merchants have sued Visa, Mastercard and card-issuing banks since 2005, alleging they jointly set credit-card interchange rates and restricted merchant choice, creating opaque and unpredictable costs. Fees tied to the two card networks totaled nearly $119 billion in 2025 and may also be passed on through higher retail prices.

On June 9, 2026, U.S. District Judge Brian Cogan in Brooklyn, New York, granted preliminary approval to a revised settlement valued at $38 billion, though it still requires final approval. The proposal would reduce the average effective U.S. credit-card interchange rate by 10 basis points for five years and cap rates for standard consumer cards at 1.25%. Merchants would also be allowed to reject higher-cost card types and impose surcharges more broadly.