A proposed legal settlement between Visa, Mastercard and U.S. merchants could soon change how some shoppers pay at checkout.
The move could potentially lead to declined transactions or extra fees for certain credit cards.
The agreement, which is still awaiting court approval, would give merchants more flexibility in deciding which credit card types they accept. A judge is expected to rule on the settlement later this year.
According to WalletHub CEO Odysseas Papadimitriou, shoppers who use premium credit card rewards would likely feel the biggest impact.
He said premium cards cost merchants more to process than standard consumer cards.
“As part of the settlement, merchants will be allowed to say, ‘We will not accept those premium cards. We will not accept corporate cards or business cards, and we will only accept standard consumer cards,’” Papadimitriou said.
That means some people could see their rewards cards declined at checkout, even if they had used the same cards at the same store before.
In addition to declined transactions, shoppers could also face added costs.
“The second thing we might see is merchants asking for an additional swipe fee for certain types of cards,” Papadimitriou said. “If you use this card, we will take it, but we will also charge you a 2% upcharge or something like that, trying to pass it to the consumer.”
While the settlement is intended to reduce merchant costs, Papadimitriou noted that some retailers believe the savings from the potential agreement are too small to make a difference and that the changes could create confusion for customers at checkout.
The confusion could be especially frustrating for shoppers who rely on a single rewards card for most of their purchases, only to have it unexpectedly declined.
For now, consumers won’t see any changes. The agreement still requires a judge’s approval, and even if approved, the effects wouldn’t take place until at least late 2026.