Industry Associations Voice Concern Over Visa and Mastercard’s Proposed Swipe Fee Settlement

Last week it was reported that a new proposed swipe fee settlement was reached between Visa and Mastercard. The settlement, filed on November 10 in federal court in Brooklyn, New York, comes nearly 20 years after the original antitrust lawsuit was launched and follows the rejection of a prior $30 billion agreement in 2024.

While it includes a modest 0.1% (10 basis point) reduction in interchange fees for five years and new flexibility for retailers to decline high-fee rewards cards, EMA warns the deal falls far short of delivering meaningful, long-term relief.” Swipe fees have exploded in recent years-reaching $111 billion in 2024 alone-while this settlement offers only temporary, minimal relief,” said Rob Underwood, President of Energy Marketers of America. “The devil is in the details, and the proposed settlement raises more questions than answers. Energy marketers cannot afford another hollow compromise.”

“No one should be fooled by the credit card industry’s smoke and mirrors,” said NACS Senior Vice President of Government Relations Lyle Beckwith. “This proposed settlement endorses business as usual, including by letting Visa and Mastercard increase their own fees without any restraints. That could erase the benefits that this settlement pretends to provide. Approving this settlement would contradict the ruling that Judge Brodie made just last year and would declare open season for the credit card companies to hit merchants and their customers with more price increases.”

Key concerns include:

• Minimal Fee Reduction: A 0.1% cut for just five years does not offset the 70% surge in swipe fees since the pandemic, leaving fuel retailers-who operate on razor-thin margins-without sustainable relief.
• Rewards Card Loophole Risk: While retailers may decline entire categories of cards, it remains unclear whether accepting one rewards card would require accepting all-potentially allowing Visa and Mastercard to reclassify non-rewards cards with token rewards to preserve high fees.
• Consumer and Sales Impact: With 70% of transactions involving rewards cards, refusing them could drive customers to competitors, forcing retailers into an untenable choice between profitability and customer loyalty.