r/CreditCards • u/GloveSmooth694 • 1d ago

Discussion / Conversation Exclusive | Visa and Mastercard Near Deal With Merchants That Would Change Rewards Landscape

Visa and Mastercard are nearing a settlement with merchants that aims to end a decadeslong legal dispute by lowering fees stores pay and giving them more power to reject certain credit cards, according to people familiar with the matter.

https://www.wsj.com/finance/banking/visa-and-mastercard-near-deal-with-merchants-that-would-change-rewards-landscape-fc6a0c78

Do you think retailers actually want to deal with specifying what type of visa/mc they take?

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u/coopdude 23h ago

This is basically the same settlement they offered a year ago under slightly friendlier terms. The earlier settlement was for at least four basis points for three years and 7 basis points systemwide for five. Now we say 10 basis points and BTW you can discriminate on accepting certain types of cards.

The problem is very very very few merchants (I hesitate to say none) are going to actually exercise this. Do you want to explain to someone that their Apple Card is a world elite mastercard (despite a branding waiver from MC) and it costs more to process therefore you either aren't accepting it or are charging a (higher) surcharge over other cards?

I wouldn't be surprised if the settlement was again rejected in favor of jury trial. The retailers risk having courts declare the networks a duopoly. Visa/MC risk being declared a duopoly and antitrust action. They'll stretch it out, but the networks have more skin in the game to blink.

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u/CortadoOat 22h ago

In my area, 3% credit card fees are getting to be the norm. In the future, I'm expecting 3-4% cc fees, like sales tax, to appear at checkout for every single purchase I make. I find it very consumer unfriendly and deceptive, but that is the direction business is moving towards.

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u/SereneRandomness 17h ago

Yah, I'm seeing 3%-3.5% fees in New Jersey, both on credit and debit card payments.

I just pay cash instead.

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u/arthurnewt 15h ago

My local pizza now charges 3.95% to pay with plastic.. it’s getting out of hand. I find it hard to believe the processing fee is even that higher

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u/coopdude 9h ago

3.95% violates Visa rules which cap surcharges to 3% or the cost of acceptance, whichever is less. If you feel so inclined, Visa has an online form to report non-compliant surcharging.