Visa and Mastercard Seek to Close 20-Year Antitrust Case With $38 Billion Deal

After two decades of courtroom battles, Visa and Mastercard are offering a $38 billion settlement to resolve allegations that they conspired to overcharge merchants through credit card “swipe fees.”

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Yet, despite the figure, many business groups argue the proposal fails to solve the problem at the heart of the dispute—how much it costs to accept a card payment in the United States, Reuters reported.

A Fresh Attempt to Satisfy the Court

The new settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term comes months after U.S. District Judge Margo Brodie rejected an earlier $30 billion agreement as inadequate. She called the proposed relief “paltry” compared to what Visa and Mastercard could continue to collect.

The card networks are now back with a revised offer, hoping to win approval and end one of the longest-running antitrust cases in U.S. payments history.

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Under the latest proposal, Visa and Mastercard would reportedly lower swipe fees—currently around 2% to 2.5%—by 0.1 percentage point for five years. Merchants could also opt out of accepting certain categories of cards, such as premium rewards cards or commercial cards, while standard consumer rates would be capped at 1.25% for eight years.

The companies say the deal would offer “meaningful relief” and greater flexibility for merchants. Neither Visa nor Mastercard admitted wrongdoing. Both firms’ shares remained steady in afternoon trading following the announcement.

Read more: Visa and Mastercard to Pay Nearly $200M in Decade-Long Merchant Class Action

Merchant groups were quick to reject the new deal. The National Retail Federation and the Merchants Payments Coalition said it still leaves businesses paying too much to process card payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

Swipe fees, also known as interchange fees, totaled $111.2 billion in 2024, up from $100.8 billion the year before, according to the NRF. That’s four times higher than in 2009.

Promised Savings Versus Reality

Lawyers representing merchants said the $38 billion figure represents projected savings through 2031, calculated by Nobel laureate Joseph Stiglitz and another economist. They estimate the deal could save merchants more than $200 billion over its lifespan.

In contrast, the Electronic Payments Coalition, which includes large banks such as JPMorgan Chase, Citibank, and Bank of America, supports the agreement. Its Executive Chairman Richard Hunt said the settlement would lower fees beyond what’s proposed in a bipartisan Senate bill seeking to regulate card costs.

The court must still approve the new deal. If accepted, it would cap a 20-year dispute that reshaped the debate around how much merchants pay to accept card payments.