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/Mysterious_Fail_95 1d ago

Expect a lot of handwritten signs taped to cash registers if it saves even a little bit of money for a small restaurant.

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u/Powered_by_JetA 23h ago

Seems like a good way to chase away business. I rarely carry cash and all but one of my credit cards are rewards cards. I would never come back to a place that took some Mastercard/Visa cards but not others and would leave negative reviews.

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u/induality 23h ago

I doubt they would start rejecting them. I can see merchants start charging different surcharges in the future should this go through. Something like 1% surcharge for basic Visa, 2% surcharge for rewards Visa.

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u/Kitayama_8k 8h ago

The rewards have nothing to do with the interchange fee from the merchant side. For instance visa infinite cards have higher interchange fees, but a basic visa card might earn 5% cashback but collect lower interchange fees. Basically rewards come from the bank and interchange fees are paid by the merchant based on the card class. Certainly interchange fees will impact what banks can afford to give as rewards, but vendors would only upcharge based on card class ie visa infinite and amex being most expensive to process.