Visa, Mastercard Reach $38 Billion Swipe Fee Settlement
Last update: November 10, 2025
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The settlement seeks to end two decades of litigation in which businesses alleged the companies and associated banks conspired to violate U.S. antitrust laws, particularly through the collection of “swipe fees.”
Visa and Mastercard on Monday announced a revised $38 billion settlement with merchants who accused the card networks of charging excessive fees for accepting credit cards, aiming to address a judge’s previous rejection of a smaller accord.
CBI News reports that the settlement seeks to end two decades of litigation in which businesses alleged the companies and associated banks conspired to violate U.S. antitrust laws, particularly through the collection of “swipe fees.”
The accord, however, has drawn opposition from merchant groups, including the National Retail Federation (NRF) and the Merchants Payments Coalition, who argue it does not sufficiently address the high costs of accepting popular rewards cards. NRF general counsel Stephanie Martz said, “You would lose a lot of business” if merchants were forced to refuse the majority of their card customers’ preferred cards.
Swipe fees, also known as interchange fees, reached $111.2 billion in 2024 in the U.S., up from $100.8 billion in 2023. Under the new settlement. Economists hired by merchant plaintiffs, including Nobel laureate Joseph Stiglitz, said the reforms could save merchants $38 billion by 2031, with broader reforms potentially saving $224 billion and enhancing competition.
Visa and Mastercard did not admit wrongdoing, and their shares remained largely unchanged following the announcement. The previous $30 billion settlement had been rejected by U.S. District Judge Margo Brodie in Brooklyn, who called the payout “paltry” relative to potential savings and criticized rules requiring merchants to accept all Visa and Mastercard cards.
Supporters of the settlement, such as the Electronic Payments Coalition, highlighted that it would lower fees beyond levels proposed in recent Senate legislation, benefiting merchants, particularly smaller ones. Critics argue the agreement still limits merchant negotiation power with banks and does not fully curb the card networks’ ability to set fees.
