MDL Settlement will reduce interchange fees

Visa and Mastercard reached a revised settlement in November 2025 with U.S. merchants in an ongoing antitrust lawsuit over interchange fees, which is distinct from a previous 2019 settlement. The new, larger $38 billion settlement aims to reduce interchange fees for five years, give merchants more flexibility on payment acceptance rules, and cap standard consumer credit rates at

. The settlement awaits final court approval. 

Key terms of the 2025 settlement

• Swipe fee reduction: A

  percentage point reduction in the average effective interchange rate for five years.

• Interchange rate cap: A five-year cap on standard U.S. consumer credit rates at

  .

• Payment acceptance flexibility: Merchants can choose which categories of U.S.-issued cards they accept, such as premium, business, and standard consumer cards.

• Surcharging options: Merchants gain expanded rights to surcharge card payments, with one filing suggesting an "unfettered" ability to charge up to

  .

• Merchant education: A new program to educate merchants on payment acceptance and cost management.

• Estimated savings: Economists estimate this could save merchants an estimated

  billion by 2031, although the card networks did not admit wrongdoing. 

Status and next steps

• The settlement is a revised version of a previous

  billion accord that a judge rejected as inadequate.

• It requires approval from the U.S. District Judge overseeing the case.

• If approved, the fee changes are not expected to take effect until late 2026 or early 2027.