Visa-Mastercard Settlement Heads to a Final Approval Hearing: What Small Merchants Should Know

The Visa and Mastercard swipe fee settlement is entering its most important stretch. In mid-September, Walmart and hundreds of other merchants and trade associations filed objections asking the court to reject the deal. Judge Brian Cogan of the U.S. District Court for the Eastern District of New York has scheduled a hearing for November 16, 2026 to decide whether to grant final approval.

If you run a small business, here's what's happening, what could happen next, and what it does (and doesn't) change for you right now.

A quick recap of the settlement

The settlement resolves the "equitable relief" side of a merchant lawsuit against Visa and Mastercard that has been running for more than 20 years. Judge Cogan granted it preliminary approval in June 2026. As announced by the networks and reported by trade press, the main terms are:

• A temporary interchange reduction of 10 basis points (0.10 percentage point) on credit card interchange for five years.
• A 1.25% cap on standard consumer credit card interchange for eight years.
• More room to surcharge credit card transactions, within limits.
• Changes to "honor all cards." Merchants could choose whether to accept Visa and Mastercard credit cards by category: commercial, premium consumer and standard consumer.

We covered these terms in more detail in our plain-English guide to the settlement.

One point many merchants miss: this is a settlement that changes rules rather than paying money. There's no claim form to file, and class members can't opt out of it. That's a big part of why large merchants are fighting it.

What the objectors are arguing

Walmart and the other objectors are asking the court to deny final approval, or at least let merchants opt out. According to Payments Dive, their filings argue that:

• The deal offers merchants "temporary and meager relief" while giving Visa, Mastercard and the banks broad protection from future lawsuits.
• It contains loopholes that could let the networks raise or add fees later.
• Forcing merchants into a class they can't leave violates their due process rights.

Several merchant groups have also said they will appeal if the judge grants final approval. Industry analysts quoted by American Banker have suggested appeals could push full implementation out by years.

What could happen on November 16

There are three realistic outcomes:

• Final approval. The judge approves the deal. Even then, appeals could delay when the new rules actually take effect, and the honor-all-cards changes are expected to start only after approval becomes final.
• Approval with changes. The judge could raise concerns that send the parties back to revise terms, as happened with an earlier version of this settlement.
• Rejection. The case would go back toward litigation, and none of the new merchant rules would take effect.

The judge may not rule from the bench on November 16. A written decision could come later.

What this means for your business today

Nothing in the settlement is in force yet. Until the deal receives final approval and the card networks update their rules, the current rules still apply. Don't reprogram terminals to decline premium cards or change how you surcharge based on headlines.

State law still applies, settlement or not. Several states restrict or ban credit card surcharges, and the settlement doesn't override them. Check whether charging a credit card fee is legal in your state before you change anything.

The interchange cap won't make card fees go away. Even in the best case, the cap trims part of interchange. Your processor's markup, monthly fees and pricing model still decide most of what you pay. And on flat-rate or tiered pricing, interchange savings may never reach you at all. See our comparison of flat rate, tiered and interchange-plus pricing.

Also in the news: Illinois swipe fee law

Illinois merchants have been watching a separate fight over the state's Interchange Fee Prohibition Act, which would bar interchange on the sales tax and tip portions of card transactions. Illinois lawmakers have pushed its effective date to July 1, 2027. On September 22, a federal judge expanded an existing injunction so the law can't be enforced against federal credit unions, adding them to national banks, federal savings associations, many out-of-state banks and the card networks. As banking groups noted in a joint statement, that leaves mainly Illinois state-chartered institutions covered. The case remains under appeal.

Don't wait on a courtroom to cut card costs

Whatever happens on November 16, you don't need permission from a judge to stop losing a slice of every card sale. A compliant dual pricing program is available today, doesn't depend on the settlement, and works with debit cards too. You show a cash price and a card price, disclose both clearly, and let customers choose. Done right, it can eliminate processing fees from your margin. New to the idea? Start with what dual pricing is.

We'll keep following the settlement and post an update after the hearing.

Want to see what you'd save now? 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. The settlement's terms and timing may change; confirm the current rules for your state and business with your processor or attorney.