The news
The Visa (V) and Mastercard (MA) swipe fee settlement drew objections from nearly 1,000 merchants and trade groups, plus Walmart (WMT), in September 2026, as they urged a Brooklyn federal judge to reject it before a November 16 hearing.
The Merchants Payments Coalition said 978 businesses and trade associations signed an objection letter filed with U.S. District Judge Brian Cogan on September 10. The coalition argued the deal gives the networks and large card-issuing banks broad protection from future antitrust claims while offering merchants limited, temporary relief with loopholes. It cited $198.25 billion in swipe fees paid by merchants in 2025 at an average rate of 2.36%.
On September 14, Walmart filed a 299-page objection, Payments Dive reported. Walmart, convenience chain Circle K and the National Association of Convenience Stores argue that forcing merchants into a class they cannot leave violates constitutional due process. Other objectors include the National Retail Federation, the National Restaurant Association, the National Grocers Association and a group of 29 merchants that includes DoorDash (DASH) and General Motors (GM).
The terms under attack, as described when Cogan granted preliminary approval on June 9, would cut credit card interchange rates by 10 basis points for five years, cap the rate on standard consumer cards at 1.25% for eight years, let merchants decline certain premium and commercial credit cards, and expand their ability to add surcharges or offer discounts. Cogan said then that his job was to judge whether the deal is "fair, reasonable, and adequate," not ideal. Mastercard has said the agreement balances competing interests.
A separate front closed. On September 14, Judge Edmond Chang ended a Chicago case after Visa and Mastercard settled with the last merchants that had opted out of an earlier class deal, including Belk, BJ's Wholesale Club and Uline. Grubhub, which led the case, settled in August. Terms were not disclosed.
The numbers
- Objecting businesses and associations (Merchants Payments Coalition)
- 978
- Swipe fees paid by merchants in 2025 (coalition figure)
- $198.25 billion
- Average swipe fee rate in 2025 (coalition figure)
- 2.36%
- Proposed credit interchange cut
- 10 basis points for 5 years
- Proposed cap on standard consumer cards
- 1.25% for 8 years
- Final approval hearing
- November 16, 2026
Why CEOs should care
For CFOs at card-accepting businesses, the first job is arithmetic. Split your credit card volume into standard consumer, premium rewards and commercial cards, then estimate what a 10-basis-point cut and a 1.25% cap on standard cards would save. The coalition argues most spending runs on rewards cards, so savings from the cap may be modest; your own card mix will tell you. Then check whether your processor passes interchange changes through line by line or bundles them into a flat rate, because a bundled contract could absorb the cut.
Payments and treasury leaders should prepare for the options the settlement would unlock. Declining premium cards or adding surcharges could lower costs but may cost sales and must fit state law and network rules. Test point-of-sale systems now to confirm they can identify card categories at checkout, and draft a customer communication plan before deciding anything.
General counsel and boards face a strategic choice. The class is mandatory, so merchants cannot opt out, and objectors say the release would limit future challenges to network rules. Decide with your trade association whether to support an appeal if the deal is approved, and document the fee data you would need for any future claim.
The bigger picture
The fight is spreading beyond this courtroom. Opt-out merchants in Chicago reached private settlements with the networks on undisclosed terms. States are also testing card fee limits: Ballard Spahr noted that a federal court ruled in June that federal law preempts Illinois' Interchange Fee Prohibition Act as applied to national banks, payment networks and some out-of-state banks, and the FDIC's September 17 proposal on state bank parity could shape how that fight continues. For the networks, final approval could close the class litigation that began in 2005; for merchants, it would set the card fee framework for most of the next decade.
What’s next
Class counsel must respond to the objections by October 14, and Cogan will hear arguments on final approval on November 16. The National Association of Convenience Stores has said it would appeal to the 2nd Circuit if the deal is approved, so merchants should budget for the terms to remain uncertain well into 2027.
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