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To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Visa and Mastercard have agreed to end their longstanding “honor all cards” rule and temporarily lower interchange fees as part of a settlement agreement announced Monday that could conclude 20 years of litigation over how much merchants pay the card networks and banks.Under the proposed settlement, merchants will have the right to decline some higher-cost Visa and Mastercard-branded credit cards and will gain new rights to add surcharges for accepting some cards.The agreement would temporarily cap posted credit interchange rates for five years, including keeping rates for standard consumer cards at 1.25% through the pact's eight-year term, starting with the court's approval. Visa and Mastercard said the settlement also would lower the “combined average effective credit interchange rate by ten basis points” for five years.A scuttled agreement from 2024 would have reduced fee rates by seven basis points for five years.The new settlement also calls for a $21 million “merchant education program” to inform the merchants about payment acceptance and cost management. “After more than 20 years of litigation, Visa and Mastercard have reached a proposed settlement with U.S. merchants of all sizes that would provide meaningful relief, more flexibility and options to control how they accept payments from their customers,” Visa said Monday in an emailed statement.Mastercard said the proposal will benefit smaller merchants, highlighting a critical reason that a federal judge rejected a prior settlement in June 2024. U.S. District Judge Margo Brodie ruled that that deal did not treat all merchants within the class equitably in terms of their rights to impose surcharges.The agreement “is the best resolution for all parties, delivering the clarity, flexibility and consumer protections that were sought in this effort,” Mastercard said in a statement. “Smaller merchants will gain in this settlement – more acceptance choices, reduced costs and simplified rules.”The National Association of Convenience Stores criticized the deal as “more smoke and mirrors” in a statement Sunday.“This proposed settlement endorses business as usual, including by letting Visa and Mastercard increase their own fees without any restraints,” said Lyle Beckwith, the association’s senior vice president of government relations. “That could erase the benefits that this settlement pretends to provide.”Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,852.76 +20.33 (+0.30%)Dow 3047,946.84 +578.21 (+1.22%)Nasdaq23,489.64 -37.54 (-0.16%)Russell 20002,459.01 +3.37 (+0.14%)VIX17.29 -0.31 (-1.76%)Gold4,130.40 +8.40 (+0.20%)PortfolioSign in to access your portfolioSign inTop gainersEWTX Edgewise Therapeutics, Inc. 20.63 +2.35 (+12.86%)CWAN Clearwater Analytics Holdings, Inc. 18.49 +1.80 (+10.75%)APGE Apogee Therapeutics, Inc. 63.26 +6.49 (+11.43%)ETOR eToro Group Ltd. 41.80 +4.07 (+10.79%)DNLI Denali Therapeutics Inc. 17.10 +1.50 (+9.62%)Top losersLIF Life360, Inc. 73.99 -19.31 (-20.70%)WULF TeraWulf Inc. 12.04 -2.26 (-15.80%)CRWV CoreWeave, Inc. 88.58 -17.03 (-16.13%)CENX Century Aluminum Company 27.92 -4.39 (-13.59%)FRMI Fermi Inc. 22.26 -3.05 (-12.05%)Most activeOPEN Opendoor Technologies Inc. 8.41 +0.44 (+5.46%)PLUG Plug Power Inc. 2.5064 -0.0536 (-2.09%)NVDA NVIDIA Corporation 193.90 -5.15 (-2.59%)BBAI BigBear.ai Holdings, Inc. 6.16 +0.45 (+7.87%)PFE Pfizer Inc. 25.38 +0.99 (+4.06%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersCRWV CoreWeave, Inc. 88.64 -16.97 (-16.08%)BTC-USD Bitcoin USD 103,069.96 -2,759.97 (-2.61%)NBIS Nebius Group N.V. 101.41 -8.54 (-7.77%)NVO Novo Nordisk A/S 49.19 +3.25 (+7.08%)APP AppLovin Corporation 604.55 -46.78 (-7.18%)Top economic events