Nearly 1,000 merchants object to Visa-Mastercard swipe fee settlement before final ruling

The revised settlement between Visa, Mastercard and a class of about 12 million U.S. merchants is drawing heavy opposition ahead of a final ruling. As of September 19, 2026, the Merchant Payments Coalition said 978 businesses and associations had filed objections asking U.S. District Judge Brian Cogan in Brooklyn to withhold final approval. Judge Cogan granted preliminary approval on June 9, 2026, to a deal that would cut credit interchange rates by 10 basis points for five years, set a 1.25% rate on standard consumer cards for eight years, let merchants decline some premium and commercial credit cards, and loosen surcharging and discounting rules.

For any business that takes cards, this case shapes processing costs for years. Objectors argue the 0.1-point cut is small against the roughly 2.36% average merchants paid in 2025, that network fees are not limited, and that the right to refuse rewards cards is mostly theoretical when those cards account for over 90% of credit spending. Supporters, including Mastercard, say the deal is balanced, and the judge called the honor-all-cards change arguably the central relief.

Practical steps: ask your processor which card categories you would be able to treat differently if the deal is approved, and what your current blended rate is by card type. If you are considering surcharging, check your state's rules and your processor's requirements before changing anything at the register. Also ask whether any interchange reduction would flow through to you or be absorbed in your pricing model.

What to watch: Judge Cogan has not issued a final decision. The National Association of Convenience Stores has said it will appeal to the 2nd Circuit if final approval is granted, so changes may not reach merchants quickly.