The $38B Visa-Mastercard Settlement: What Small Merchants Can Actually Do Now

If you accept credit cards, you have probably seen headlines about the roughly $38 billion Visa and Mastercard swipe fee settlement. A federal judge granted it preliminary approval on June 9, 2026. The headlines make it sound like everything changed overnight. It didn't. Some changes are real, some are coming, and some depend on a final court approval that hasn't happened yet.

Here is a plain-English breakdown of what the settlement says, what it means for a small business, and what you can do today to lower what you pay.

What the settlement changes (once it's final)

The revised settlement resolves long-running antitrust litigation between merchants and the two largest card networks. Based on the terms as publicly reported, the main changes are:

• A cap on standard credit card interchange. Interchange on standard U.S. consumer credit cards would be capped at 1.25% for five years, with a small average reduction across credit interchange overall.
• More flexible surcharging. Merchants could add a surcharge to credit card transactions at either the card brand level or the product level (not both), generally limited to the lesser of 3% or your actual cost of acceptance.
• Changes to "honor all cards." Merchants could choose whether to accept categories of Visa and Mastercard credit cards, such as commercial cards, premium rewards cards and standard consumer cards, instead of being required to accept every credit card the network issues.

What has not changed yet

This is the part many articles skip. Preliminary approval is not final approval. Large retailers and trade groups have filed objections, and the court still has to decide whether to grant final approval. Most of the new merchant rules only take effect after final approval (the honor-all-cards change, for example, is expected within 90 days of it).

So if someone tells you to reprogram your terminal today to decline premium rewards cards or to surcharge under the "new rules," be careful. Those rules aren't in force until the court finalizes the deal and the networks update their rulebooks.

Also, the settlement does not override state law. Several states restrict or prohibit credit card surcharges, including Connecticut, Massachusetts and Maine, and California's pricing rules make surcharging impractical. Others, like Colorado and New York, cap surcharges or tie them to your actual cost. Check your state first; our state-by-state guide to charging a credit card fee is a good place to start.

Will the interchange cap lower my fees?

Maybe a little, but probably less than you'd hope.

The cap applies to standard consumer credit cards. Premium rewards cards and commercial cards, which carry the highest interchange, are handled differently. And interchange is only one part of your bill. Your processor's markup, monthly fees, PCI fees and "non-qualified" surcharges often matter just as much.

A merchant processing $50,000 a month could still be paying $1,300 to $1,700 in total card fees after the cap, depending on their card mix and pricing model. The cap trims the edges; it doesn't eliminate the cost.

What you can do today

You don't need to wait for a court ruling to stop losing 2–4% of every card sale.

1. Look at your effective rate.

Divide your total monthly fees by your total card volume. If it's above 3%, you're likely overpaying on markup or bundled fees, not just interchange. Our guide to reading your processing statement walks through it line by line.

2. Consider dual pricing or a cash discount program.

These are already allowed today, don't depend on the settlement, and work with debit cards too (surcharges can't be applied to debit). With dual pricing, you show a cash price and a card price, and customers choose how to pay. With a cash discount program, your posted price includes the card cost and cash payers get a discount. Both are clearly disclosed and designed to follow card network rules.

If you're new to the concept, start with what dual pricing is and how it differs from surcharging.

3. Get your signage right.

Whatever program you use, disclosure is where merchants get into trouble. Clear signs at the entrance and the register, plus accurate receipts, protect you. We offer free printable cash discount signs you can customize.

4. Don't make big acceptance changes yet.

Hold off on declining card categories until the settlement is final and your processor confirms the network rules have changed.

The bottom line

The settlement is a real shift, and once it's final, merchants will have more control over which cards they accept and how they pass on costs. But it's not in force yet, it doesn't override state law, and the interchange cap alone won't make card fees disappear.

The fastest way to cut card costs today is still a compliant dual pricing or cash discount program on transparent pricing.

Want to know exactly what you're paying? Send us your most recent processing statement for a free savings analysis. We'll show you your effective rate and what you'd pay with dual pricing, with no obligation.

This article is for general information and isn't legal advice. Card network rules and state laws change; confirm the current rules for your state and business with your processor or attorney.