Visa, Mastercard Near Fee Deal

Visa and Mastercard are reportedly close to settling a two-decade legal battle with U.S. merchants. The potential agreement would lower interchange fees and give merchants more control over which credit cards they accept.

Fee Reductions. Interchange fees, typically 2–2.5% per transaction, could be trimmed by about 0.1 percentage points over several years.

Merchant Flexibility. The settlement may ease “honor all cards” rules, allowing merchants to accept or reject certain card categories like rewards, no-rewards, or commercial cards.

Legal & Market Context. The dispute dates back to 2005. A prior $30 billion settlement capped swipe fees, but merchants have long sought lower costs and more control over card acceptance.

If finalized, the deal could reduce costs for merchants and reshape payment processing rules, while offering opportunities for payment technology firms to optimize routing and compliance under the new framework.