Archive · 12 Nov 2025
Credit Card Surcharges and Choices Could Change at Checkout
Imagine you're buying a coffee, and the price is a little different depending on which credit card you use.
That might start happening more often because Visa and Mastercard have made a deal with stores.
For years, stores have paid fees every time someone uses a credit card.
Now, stores might be allowed to add a small extra charge, called a surcharge, to your bill if you use a credit card that costs them more, like one with lots of travel points.
They could also potentially decide to only take certain kinds of credit cards from Visa or Mastercard.
But don't worry too much about your favorite rewards cards!
The deal also includes a small cut in the fees, and experts think your points and benefits will probably stay the same.
Stores might also be able to choose not to accept certain types of cards.
This whole thing is to settle a big argument about those card fees that's been going on for a long time.
A settlement between Visa, Mastercard, and U.S. merchants could allow tiered pricing based on payment method.
Merchants may be able to charge different surcharges depending on the credit card category used.
The settlement could permit merchants to select which categories of cards to accept within a network.
An average interchange fee reduction of 0.1% will be phased in over five years, but significant changes to rewards are not expected.
Debit cards are not affected by this settlement.
- Who
- Visa, Mastercard, and U.S. merchants
- What
- A settlement has been reached that could allow merchants to charge different surcharges based on credit card type and potentially choose which card categories to accept.
- When
- The settlement was announced this week and requires court approval.
- Where
- U.S. merchants and consumers
- Why
- To resolve a two-decade antitrust battle over interchange fees, aiming to give merchants more power to offset their costs.
Merchant Groups
Banks and Payment Networks
Interchange Fees and Surcharges
Merchant Groups
Merchant groups have contested interchange fees and the terms of the settlement, with some objecting to a previous deal.
Banks and Payment Networks
Visa and Mastercard have agreed to a settlement that could allow merchants to charge different surcharges based on card type, aiming to offset merchant costs.
Impact on Card Acceptance
Merchant Groups
While the settlement could allow merchants to choose which card categories to accept, analysts suggest merchants are unlikely to block rewards cards.
Banks and Payment Networks
The settlement may allow merchants to accept specific categories of cards within a network, potentially leading to more nuanced card acceptance policies.
- Settlement Parties
- Visa, Mastercard, and U.S. merchants
- Core Issue
- Interchange fees charged by banks to merchants
- Potential Changes
- Tiered surcharges based on card type, selective card category acceptance
- Impact on Rewards Cards
- Expected to remain largely unchanged due to insufficient interchange fee reduction
- Consumer Reaction to Surcharges
- Surveys indicate many consumers would switch payment methods with a 3-4% surcharge
- Debit Cards
- Not affected by the settlement