Visa-Mastercard Deal Opens Door to Premium-Card Surcharges

U.S. merchants have challenged Visa and Mastercard since 2005, alleging the networks used their market power to keep interchange, or swipe, fees artificially high. Their “Honor All Cards” rules also required retailers accepting either brand to take premium rewards products that cost more to process. Visa and Mastercard swipe fees in the U.S. reached $118.8 billion in 2025, making the dispute consequential for retail prices, card rewards and competition in consumer payments.

U.S. District Judge Margo Brodie granted preliminary approval on June 9, 2026, to a revised settlement valued at $38 billion. The agreement would cut the networks’ average effective credit interchange rate by 10 basis points for five years and cap standard consumer-card interchange at 1.25% for eight years. Merchants could reject premium-card categories or impose product-level surcharges capped at the lower of 3% or their acceptance cost. If retailers adopt those options, premium cardholders could pay checkout fees on top of annual card charges, though the settlement still requires final court approval.