What does the judge's preliminary approval mean?

It means the judge has approved the settlement initially, but final approval is still needed before implementation.

How will the settlement affect merchants and consumers?

It may allow merchants to surcharge Visa and Mastercard users and reduce their costs, potentially leading to lower prices for consumers.

Will the settlement impact Visa and Mastercard's revenue?

It may impact their revenue from swipe fees, but the exact details are not yet clear.

Judge Preliminarily Approves $38B Visa-Mastercard Swipe Fee Settlement

A US judge has preliminarily approved a $38 billion settlement between Visa (V), Mastercard (MA), and merchants over swipe fees. If finalized, it could change how merchants handle card fees and surcharges.

June 10, 2026

2 min read

Source: Yahoo Personal Finance

Key Numbers

settlement amount

$38 billion

A US judge has preliminarily approved a $38 billion settlement between Visa (V), Mastercard (MA), and a group of merchants, ending a long-running lawsuit over swipe fees paid by merchants when accepting credit cards.

Details of the Action

The settlement, announced in March 2024, includes $38 billion in payments to affected merchants over several years. It also involves changes to swipe fee rules, such as allowing merchants to surcharge customers using Visa and Mastercard cards and providing more transparency about fees.

Company Position

Visa and Mastercard welcomed the preliminary approval, calling it an important step toward resolving the dispute. They said the settlement provides certainty for merchants and avoids costly litigation.

Precedents and Context

This lawsuit is one of the longest class actions in history, dating back to 2005. Visa and Mastercard previously attempted to settle in 2012 for $7.25 billion, but the court rejected it as insufficient.

Potential Financial Impact

The settlement is expected to reduce costs for merchants, potentially benefiting consumers through lower prices. However, it may impact Visa and Mastercard's revenue from swipe fees, which form a significant part of their profits.

Frequently Asked Questions

It is a $38 billion settlement to end a lawsuit over swipe fees paid by merchants when accepting Visa and Mastercard cards.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.