Name: Visa, Mastercard deal may change card fees and rejections
Uploaded: 2025-11-12T00:55:51.572Z
Duration: 2 min 55 s
Description: A new settlement between Visa, Mastercard, and retailers will gradually cut interchange fees — the charges merchants pay banks to process credit cards. CBS News business contributor Javier David explains what it could mean for consumers.

A new settlement between Visa, Mastercard, and retailers will gradually cut interchange fees — the charges merchants pay banks to process credit cards. CBS News business contributor Javier David explains what it could mean for consumers.

Dallas

A new settlement between Visa, Mastercard, and retailers aims to gradually reduce interchange fees, which are the charges merchants pay to process credit card transactions. The agreement would also allow businesses to be more selective about which cards they accept from these networks, potentially impacting consumers who rely on cards with perks like cashback or travel points.

The settlement is not yet finalized and is subject to ongoing court challenges. Merchants, who have long objected to rising interchange fees, may respond by restricting card acceptance or passing costs onto consumers, marking a significant development in a dispute that has lasted for decades.

Visa, Mastercard deal may change card fees and rejections

A new settlement in the works between some major credit card companies and merchants that accept those cards could change what fees you pay and whether you can even use what's in your wallet to make that purchase. The agreement reached between Visa and MasterCard and retailers aims to slowly lower interchange fees, which are bank fees paid by merchants to process credit cards. And the settlement would also change a requirement that forces businesses to accept all of a network's credit cards if it accepts one of them. CBS News Business Contributor Javier DeVille joins us now. He's also the business editor for the Dallas Morning News. So, Javier, what does this mean for the average person? The average person, what it means is that some of the credit cards that they use or that they've taken for granted and earned them these perks, they may not be able to use them in the same way or in the same locations that they used to. The sort of dirty little secret about this battle is that a lot of these interchange swipe fees, they call them, they're controversial because merchants are the ones paying for them and they keep climbing. And that is underwriting a lot of the perks that we get in terms of cashback or, you know, your travel points or whatever it is that you want to call it. And consumers have embraced them because they have come to see it as free money. But in fact, it's not free. And so what does this mean for stores and for that matter, what about banks? So, you know, for stores, look, it means that they are, you know, sort of taking a stand on something that they feel costs them a lot of money. And the data that we've gotten shows that last year, these change fees or interchange fees cost merchants tens of billions of dollars. According to the Nielsen Report data, we covered this at the Dallas Morning News, there was a legislative proposal meant to cap some of these fees here in the state that ultimately failed. In terms of what this means for merchants, they're, again, sort of kind of mad as you know what, they're not going to take it anymore. And they are going to sort of say, look, there's only so much we're going to pay. So either you pay more in terms of what the fees they're charging you or they may just limit or prohibit you from using some of these cards at their stores. Is this a done deal or do we sort of as consumers have to wait and see what the impact is going to be if we have some of those specialized credit cards that we use to make purchases? Yeah, we're still in the wait and see mode. We got to figure out how this sort of plays out in real time. There are still some challenges in court that need to be addressed. But the end of the, you know, this has been going on for like decades now, and it's not necessarily over yet, but it does sort of mean that this is kind of a demarcation or a line in the sand that merchants are pushing back. They're not going to just sort of eat all of these fees and underwrite some of these perks that consumers have gotten used to, but really end up costing the merchant some substantial amounts of money. OK. Javier Duby, thank you.

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