NEW YORK (AP) — Visa and Mastercard have proposed a settlement in their long-running legal dispute with merchants and retailers over how much they charge merchants to accept their cards.
The most important part of the settlement could directly impact how customers use their Visa- and Mastercard-issued credit cards, and may result in some consumers getting denied at the point-of-sale for purchases
Visa and Mastercard have been in litigation with a class-action group of merchants for nearly 20 years over the costs they impose on merchants to use their payment networks, known as interchange. A previous settlement was rejected by the judge overseeing the case last this year, requiring Visa and Mastercard’s lawyers to go back to the drawing board on the scope and size of the settlement.
The new part of the settlement announced Monday addresses the “honor all cards” rule, a cornerstone of how credit and debit cards work in the U.S.
The “honor all cards” rule states that if a merchant accepts Visa or Mastercard as a form of payment, they are required to accept all iterations of Visa and Mastercard products, regardless of who issues it and the cost to the merchant.
That has led to consternation among merchants over the years because rewards-heavy credit cards, like the Chase Sapphire Reserve or Citi Strata Elite, use a premium version of a Visa or Mastercard. For the Sapphire Reserve, Chase uses the Visa Infinite card, and for a card like Strata Elite, it’s issued as a World Elite Mastercard. These cards have gotten far more popular in the last decade.
Both a Visa Infinite and World Elite Mastercard cost more for a merchant to accept. The amount of additional interchange a merchant will pay varies on size and industry, but one example is the Visa Infinite, which can be 15 basis points (0.15%) more expensive than a Visa Signature (a mid-tier credit card) for a merchant to accept.
Under the proposed settlement, merchants could discriminate between the different tiers of Visa and Mastercard products, meaning high-reward credit card users may be declined at checkout if the merchant has opted out of accepting the higher-tier card. A merchant may also be able to pass along the higher cost to accept the rewards cards to the customer in the form of a surcharge on their bill, under the proposed settlement.
This will place merchants in the position of making a choice: accept all cards with the higher fees or reject some of the higher-fee cards and likely upset wealthier consumers who typically enjoy earning points on routine purchases.
Like the previous settlement last year, merchants would receive a temporary reduction on swipe fees for a few years. In this settlement it would be a 10 basis point reduction in swipe fees for five years, and standard credit card transactions would be processed at 1.25% of the purchase price for eight years.
When the settlement was announced on Monday, the major merchant and retail lobby groups came out in opposition, so it’s not certain whether this settlement will ultimately be the one that is finalized. Merchants and lobbyists have been pushing for years to get Congress to regulate interchange fees, as they do with debit cards. The merchant groups say this settlement does not go far enough.
“Once again, this proposal is all window dressing and no substance. The reduction in swipe fees doesn’t begin to go far enough, and the change in the honor-all-cards rule would accomplish nothing. If the courts can’t fix this, it’s time for Congress to take action,” said Stephanie Martz, chief administrative officer and general counsel for the National Retail Federation, in a statement.
The payment networks, who are ready to put the matter behind them after two decades of litigation, say this may be the best solution for the merchants to potentially avoid a drawn out trial-and-appeal process.
“We believe that this is the best resolution for all parties, delivering the clarity, flexibility and consumer protections that were sought in this effort,” a Mastercard company spokesperson said.
The settlement involves Visa and Mastercard only. American Express, which uses a closed-loop system where it's both the issuing bank and payment network for their cards, is not involved in this ongoing litigation. The settlement also does not impact debit cards.
FILE - In this Feb. 20, 2019, file photo are Mastercard and Visa credit cards in Zelienople, Pa. (AP Photo/Keith Srakocic, File)
President Donald Trump said U.S. forces will keep hitting Iran “very hard” in the next two or three weeks and bring the country “back to the Stone Ages,” even as he touted the success of U.S. operations and argued that all of Washington’s objectives have so far been met or exceeded.
Trump said Iran would continue to face a barrage of attacks in the short term.
“We are going to hit them extremely hard over the next two to three weeks,” Trump said. “We’re going to bring them back to the Stone Ages, where they belong.”
Trump didn’t say anything about negotiations with Iran or bring up the April 6 deadline he set for Iran to open the Strait of Hormuz, the critical waterway for global oil and gas transport. He has threatened to attack Iran's energy infrastructure if the strait was not reopened.
Trump also did not offer a clear path to end the supply disruptions that have sent energy prices soaring. He did not mention the possibility of sending U.S. ground troops into Iran, or NATO, the trans-Atlantic alliance he has railed against for not helping the U.S. secure the waterway.
Oil rose more than 4% and Asian stocks fell after the comments. Oil prices were sharply higher following Trump’s remarks. Brent crude, the international standard, jumped 4.9% to $106.16 per barrel. Benchmark U.S. crude rose 4% to $104.15 a barrel.
U.S. gas prices jumped past an average of $4 a gallon for the first time since 2022 on Tuesday, as the Iran war continues to push fuel prices higher worldwide. Analysts say those high fuel costs will trickle into groceries as businesses’ transportation and packaging costs pile up.
Here is the latest:
A New York-based think tank said Thursday that U.S. President Donald Trump’s speech suggests he “is willing to leave the Strait of Hormuz off the table, leaving other nations to deal with the consequences.”
“Trump’s message was that the United States can sustain its own economic and energy ecosystem, while countries dependent on regional exports will either have to buy from the United States or manage the Strait themselves,” the Soufan Center wrote.
“While Trump explicitly thanked U.S. allies in the Persian Gulf for their cooperation and allyship, an expedited U.S. withdrawal without securing the Strait will leave many of these countries, whose economies are dependent on energy exports, in the lurch.”
Fuel prices in Thailand soared again on Thursday after the government further cut subsidies, sending diesel price to over 44 baht ($1.35) per liter, about 12% increase.
The surge was the second time in a week, after a majority of fuel prices rose by 6 baht ($0.18) per liter last Thursday.
Democrats are criticizing Trump’s primetime address to the American people on the war in Iran as “incoherent” and as doing little to answer “the most basic questions the American people,” according to statements from two Democratic lawmakers released on Wednesday.
Sen. Mark Warner, D-Va., noted that Trump owed Americans more answers about a conflict that has driven up prices on gas “alongside rising prices for diesel, fertilizer, aluminum, and other essentials, with consequences that will continue to ripple through the economy for a long time to come” in his statement.
Meanwhile, Sen. Chris Murphy, D-Conn., released a statement that said the “speech was grounded in a reality that only exists in Donald Trump’s mind.”
Murphy went on to add that “no one in America, after listening to that speech, knows whether we are escalating or deescalating.”
Oil rose more than 4% and Asian stocks fell after U.S. President Donald Trump said in his first national address since the Iran war began that the U.S. will keep hitting Iran very hard.
Trump also said the United States will “finish the job” in Iran and that military operations could wrap up soon.
Tokyo’s Nikkei 225 was down 1.4% to 53,004.81 in early Asia trading on Thursday. South Korea’s Kospi lost 3.4% to 5,292.36. Hong Kong’s Hang Seng fell 0.8% to 25,082.59.
U.S. futures were down more than 0.7%.
Oil prices were sharply higher following Trump’s remarks. Brent crude, the international standard, jumped 5% to $106.22 per barrel. Benchmark U.S. crude rose 4.2% to $104.36 a barrel.
Members of civic groups hold signs against the U.S. and Israel attacks on Iran near the U.S. Embassy in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Lee Jin-man)
Israel's rescue teams and residents take shelter as sirens sounds next to a site struck by an Iranian missile in Bnei Brak, Wednesday, April 1, 2026. (AP Photo/Oded Balilty)
A family who fled Israeli shelling in southern Lebanon warm themselves by a bonfire next to tents used as shelters in Beirut, Lebanon, Tuesday, March 31, 2026. (AP Photo/Emilio Morenatti)
People stand near a damaged van beside scattered debris following an Israeli strike in Beirut, Lebanon, Wednesday, April 1, 2026. (AP Photo/Hassan Ammar)
A firefighter extinguishes a car at the site of Israeli airstrikes, in Beirut, Lebanon, Wednesday, April 1, 2026. (AP Photo/Hussein Malla)
