Visa and Mastercard Reach Settlement — What It Could Mean for Your Rewards Cards

Updated: November 11, 2025, 12:05pm CST

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Merchants Could Soon Choose Which Credit Cards They Accept
Final Thoughts

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For the past 2 decades, merchants have been battling Visa and Mastercard over interchange fees. This is the small percentage of every transaction that credit card networks charge businesses.

Now, as first reported by The Wall Street Journal, the 2 payment networks have agreed to a long-awaited settlement that could finally bring that fight to a close.

Here’s what this settlement means for your favorite rewards cards — and whether we might see stores rejecting them.

Merchants Could Soon Choose Which Credit Cards They Accept

Under the proposed agreement (which still requires court approval), Visa and Mastercard will slightly reduce the fees merchants pay by about 0.1%, phased in over several years. The bigger story here isn’t the small fee cut, but rather that merchants might finally get to choose which cards they do and do not accept.

Credit Cards Brown Wallet Upgraded Points LLC — Image Credit: Upgraded Points

Cards will be grouped into 3 tiers:

Basic consumer cards, like the Chase Freedom Unlimited^®
Premium consumer cards, such as the Chase Sapphire Preferred^® Card, Chase Sapphire Reserve^®, and Capital One Venture X Rewards Credit Card
Business cards, including the Ink Business Unlimited^® Credit Card, Sapphire Reserve for Business℠, and Capital One Venture X Business Card

Merchants could opt to accept only basic consumer cards, or ban business and premium cards altogether — the very ones that offer the best travel rewards, protections, and perks. The reasoning is simple: those cards carry higher processing fees, which eat into merchants’ profits.

Still, while this sounds dramatic, it’s unlikely you’ll suddenly see stores turning away your rewards card anytime soon. First, customers tend to spend more with a credit card, and most retailers don’t want to risk losing a sale to save a few cents. Even American Express, known for its high fees, is widely accepted because businesses realize that losing 100% of a sale costs far more than a 3% transaction fee.

Hot Tip:

If merchants ever start limiting premium cards, lean on your no-annual-fee cards or flat-rate rewards cards, such as the Capital One Venture Rewards Credit Card or Citi Double Cash^® Card, for smaller purchases and save your top-tier cards for travel and larger transactions.

Final Thoughts

While the settlement could technically allow stores to reject premium rewards cards, most businesses prioritize keeping customers happy over saving a fraction of a percent. Your favorite travel and cash-back cards aren’t going anywhere, though this agreement could influence how rewards evolve down the road. For now, use your cards with confidence and earn those points and miles.