Visa and Mastercard Agree to $38 Billion Settlement with Merchants

On November 10, 2025, Visa and Mastercard announced a revised $38 billion settlement with merchants who had accused the card networks of charging too much to accept their credit cards. This settlement aims to resolve 20 years of litigation in which businesses claimed Visa, Mastercard, and banks conspired to violate U.S. antitrust laws through high "swipe fees."

The new accord addresses concerns raised by U.S. District Judge Margo Brodie, who had rejected a previous $30 billion settlement as inadequate in June 2024. Under the revised deal, Visa and Mastercard will lower swipe fees by 0.1 percentage point for five years. Standard consumer card rates will also be capped at 1.25% for eight years, a more than 25% reduction. Additionally, merchants will gain more options to impose surcharges when customers pay by card, including an "unfettered" ability to charge up to 3%.

While some merchant groups still oppose the settlement, arguing it does not go far enough, two economics experts hired by the plaintiffs estimate the reforms could save merchants $38 billion by 2031 and unlock significant competition in the payments system. Visa and Mastercard did not admit wrongdoing in agreeing to the settlement.