Court Cast: Visa and Mastercard Unveil $38 Billion Deal to End Swipe Fee War — But Retailers Aren’t Buying It
Merchant groups, led by the National Retail Federation and the Merchants Payments Coalition, are already calling foul, saying the proposal fails to fix the fundamental imbalance that has allowed the two payment giants to dominate the market for years. “You can’t just tell 80% of your card customers you won’t take their cards — that’s business suicide,” one retail representative said, summing up the frustration.
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Bloomberg Law: Visa, Mastercard to Cut Fees, Let Retailers Reject Certain Cards
Trade groups such as the Merchants Payments Coalition came out against the proposed settlement, arguing that premium cards like the Sapphire Reserve have become so popular in recent years that it would be impossible not to accept them. ... As part of their opposition to the deal, the Merchants Payments Coalition said that Visa and Mastercard only agreed to limit the portion of the fees that they pass on to lenders — not the fees they keep for themselves. “The minuscule reduction proposed in the settlement on bank fees could still allow Visa and Mastercard to be able to raise their own fees without any limits,” said Jennifer Hatcher, an executive committee member for the MPC. “All of the supposed merchant and consumer savings could easily be canceled by Visa and Mastercard increasing their fees.”
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Credit Unions Today: Major Card Networks’ New Deal With Merchants May Undercut Marshall-Durbin Momentum
Merchant groups are already pushing back, arguing the updated deal still fails to resolve the concerns raised by U.S. District Judge Margo Brodie of Brooklyn, whose approval is required after she rejected the previous accord in June 2024. ... These groups, including the National Retail Federation and the Merchants Payments Coalition, say businesses would still pay too much, including to accept the popular rewards cards that dominate the card market.
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Reuters: Visa, Mastercard reach $38 billion swipe fee settlement, draw opposition
Doug Kantor, general counsel of the National Association of Convenience Stores, countered that the settlement doesn't give banks an incentive to lower rates they charge, but lets Visa and Mastercard "without any limitation" raise their own. "Merchants ought to be able to negotiate and get prices set with different banks, but this settlement prohibits that," Kantor, also a member of the Merchants Payments Coalition's executive committee, said in an interview.
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Financial Times: Visa and Mastercard forge deal to end long-term dispute with merchants
Some major trade bodies including the National Retail Federation and the Merchants Payments Coalition criticised the proposed settlement, saying it does not go far enough to address their concerns over swipe fees. ... Both groups said they were pushing for Congress to pass the Credit Card Competition Act, which the Merchants Payments Coalition estimates will save merchants $17bn a year by making it easier for large banks to process credit card payments on alternative card networks.
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CSP Daily News: Retailers oppose latest interchange fee settlement offer
“Achieving a settlement that works to reverse current illegal and anticompetitive practices of Visa and Mastercard should be straightforward, but this attempt fails once again and should be rejected,” said Jennifer Hatcher, chief public policy officer at FMI—the Food Industry Association and a member of the executive committee at the Merchant Payments Coalition.
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Hoodline: Honolulu Shops Brace For Swipe-Fee Shakeup As Visa, Mastercard Pitch $38B Deal
Retail trade groups didn’t mince words. The National Retail Federation labeled the draft agreement “all window dressing and no substance” and urged Judge Margo Brodie to reject it, arguing a tiny basis‑point trim won’t fix systems that let banks centrally set fees, per an NRF press release. The Merchants Payments Coalition and small‑business advocates also warned that because most consumer cards are rewards cards, merchants may have limited ability to steer customers toward cheaper options.
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PYMNTS: SMBs Stand to Gain From Visa and Mastercard ‘Swipe Fees’ Settlement
The Merchants Payments Coalition called fee reduction “minuscule,” and said Visa and Mastercard would be free to raise fees without restrictions after temporary cuts expired. It also said merchants had “no choice” but to accept rewards cards, which make up 85% of all cards issued, and banks could still move cards into different categories, essentially requiring merchants to accept all cards.
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Punchbowl News: Senate Ag Moves on Crypto, Plus Credit Card Wars
"The card industry is trying again to get legal protection while offering little in return to merchants," said Jennifer Hatcher, who serves on the executive committee of the Merchants Payments Coalition.
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Supermarket News: Retailers oppose latest interchange fee settlement offer
“Achieving a settlement that works to reverse current illegal and anticompetitive practices of Visa and Mastercard should be straightforward, but this attempt fails once again and should be rejected,” said Jennifer Hatcher, chief public policy officer at FMI—the Food Industry Association and a member of the executive committee at the Merchant Payments Coalition.
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