Visa, Mastercard Settlement Lets Merchants Reject Costly Rewards Cards After Lengthy Legal Battle

Benzinga

Visa and Mastercard reached a settlement allowing merchants to reject high-fee rewards credit cards, ending the long-standing “honor all cards” rule. The change could impact premium travel and rewards cards as merchants look to cut rising interchange costs.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Premium credit card users could soon see their rewards cards rejected by some merchants,

00:07according to the Wall Street Journal. Visa and MasterCard reached a settlement,

00:11ending a 20-year legal battle that broke the long-standing rule requiring stores to accept

00:16all cards from each network. Merchants can now reject high-fee credit cards under the new

00:20settlement, marking a symbolic win after years of fighting the Honor All Cards rule.

00:25Merchants may reject many airline, hotel, and major bank rewards cards,

00:29from no-fee cashback options to premium travel cards with high annual fees.

00:34The dispute centers on interchange fees, which cost merchants $83 billion in 2024,

00:39a 71% increase since 2019. Rising transaction fees have burdened merchants as consumers

00:45increasingly favor credit, especially rewards cards, over cash payments.

00:50For all things money, visit Benzinga.com.

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