Visa Mastercard Settlement 2026: What Merchants Need

As of September 30, 2026, the Visa Mastercard settlement is not in force. It received preliminary approval on June 9, 2026, and a final approval hearing is set for November 16, 2026. If it’s approved and survives any appeals, it would trim credit interchange by about 10 basis points for five years, cap standard consumer credit interchange at 1.25% for eight years, and give merchants new rights to decline premium cards and to surcharge or discount by card type. Until then, today’s card-brand rules and state laws still apply.

Here’s what’s in it, what isn’t happening yet, and what you can do now.

Where things stand (as of September 30, 2026)

The case is the long-running interchange fee litigation in the U.S. District Court for the Eastern District of New York, before Judge Brian Cogan. It has covered roughly 12 million merchants and more than two decades of litigation.

Preliminary approval means the court agreed the deal was good enough to send to merchants for notice and comment. It does not mean the terms are in effect. A decision could come by year-end, and objectors may appeal, which could push implementation out further.

Who is objecting, and why

The objections matter because they could shape the final ruling, or an appeal. In September 2026, Walmart, Circle K, the National Association of Convenience Stores and roughly 900 other merchants and trade groups asked the court to reject the deal or let them opt out (Payments Dive). Their main arguments, as reported:

• The relief is too small and too temporary. A 10 bps cut for five years, they argue, doesn’t change the economics of card acceptance.
• The release is too broad. Objectors say the networks would get sweeping legal protection while keeping room to raise other fees or add new ones.
• Merchants carry the burden. Steering by card type means merchants build the surcharge and acceptance systems.
• No opt-out. The class is mandatory, so merchants can’t leave and sue on their own.

Supporters point to the judge’s preliminary finding that the deal provides more extensive relief than the version rejected in 2024. The judge will weigh both sides at the November hearing.

What’s in the proposed settlement

As reported, the deal would:

• Cut credit interchange by about 10 basis points (0.10%) for five years.
• Cap standard consumer credit interchange at 1.25% for eight years.
• Loosen “honor all cards.” Merchants could decline certain higher-cost premium and commercial Visa and Mastercard credit cards.
• Allow steering by card type. Merchants could surcharge, or offer discounts, to steer customers away from higher-cost cards.

The relief would be rule and rate changes, not a check. It’s separate from the earlier monetary settlement for past fees.

What 10 basis points means in dollars

Ten basis points is 0.1%. On $30,000 a month in credit card sales, that’s about $30 a month, or $360 a year. Real money, but small next to what most small businesses pay in total. If your effective rate is 3.5%, the cut would bring it to about 3.4%, assuming your processor passes it through.

The 1.25% cap on standard consumer credit could matter more for some businesses. Today, Visa CPS Retail credit runs about 1.51% + $0.10 and Mastercard Merit III about 1.65% + $0.10. But the cap reportedly applies to standard cards, not premium rewards cards, which run about 2.6% + $0.10 and make up a growing share of what customers carry.

What’s NOT in force yet

To be completely clear, none of the following is the rule today:

• The 10 bps interchange cut
• The 1.25% cap on standard consumer credit
• The right to decline premium or commercial cards
• New network rights to steer by card type

Today’s card-brand rules and state laws still govern acceptance, including any rules on adding fees at checkout. The settlement wouldn’t override state law even if approved. If you’re considering any checkout-fee program, get advice from your processor and counsel on the rules in your state first. It isn’t something we offer or recommend.

See your number. Don’t wait on a court to find out what fees cost you. Get your dollar figure today. Run the savings calculator

What it could mean for your costs

Interchange-based pricing gets the cut automatically

If you’re on interchange-plus pricing, a lower interchange rate flows through to your statement on its own, because interchange is passed through at cost. You don’t have to ask.

If you’re on flat-rate or tiered pricing, it may not. Your processor sets that rate, and it could keep the difference. That alone is a reason to know which pricing model you’re on. Flat rate vs. tiered vs. interchange-plus explains how to tell.

Steering by card type

If approved, merchants would get more room to treat expensive cards differently from cheap ones, for example by declining certain premium or commercial cards. Objectors have argued that this puts the work of building card-by-card acceptance rules on merchants. For most small businesses, declining cards customers want to use is a hard trade. Lowering what you pay on every card is usually the simpler win.

Commercial cards are a separate story

The settlement’s headline cap is for standard consumer credit. If you sell to other businesses, the bigger lever on commercial cards today is sending Level 3 data with each payment, which can bring qualifying corporate and purchasing card rates well below the standard commercial rate. What is Level 3 processing explains it.

What merchants should do now

1. Don’t change anything based on the settlement yet. None of its terms are in force, and timing depends on the court and any appeals.
2. Watch the November 16, 2026 hearing. The official notice and documents come from the court-appointed settlement administrator. Use that, not a sales pitch, as your source.
3. Know your effective rate. Total fees ÷ total card volume, from your last three statements. What is a good effective rate? shows how to read it.
4. Find out your pricing model. If you’re on flat or tiered pricing, ask your processor in writing whether it will pass through any interchange reduction.
5. Check your contract. If the rules change, you want to be on month-to-month terms, not locked into a three-year agreement with a $295 to $495 or more termination fee.
6. Fix what you can control today. The processor’s markup, junk fees and your pricing model are all decisions you can make this month. They don’t need a court’s permission.

How Mojo can help

Mojo Payments runs on cost-plus pricing: interchange and card-brand fees pass through at cost, so if the settlement lowers interchange, you see it on your statement automatically. On top of cost-plus, we build a pricing program from your own statement, with the lowest price on the payments you run most, month-to-month and no cancellation fee. Apply online with 1–3 statements and we’ll return a quote within 24 hours showing every fee line, current next to proposed. Get your free statement review.

This article reflects public reporting as of September 30, 2026. It is not legal advice.

Frequently asked questions

This guide is general information, not legal or financial advice. Card-brand rules and state laws change, so confirm specifics for your business.