Mastercard agrees to merchant class settlement with 10 basis point interchange cut
Mastercard and its subsidiary entered an updated class settlement with court-appointed counsel for a US merchant injunctive relief class, with Visa also a party. The agreement is subject to final approval by the Eastern District Court of New York, and Mastercard says it would resolve all pending US merchant litigation seeking changes to its interchange structure and merchant acceptance rules. A 10 basis point reduction in the average systemwide effective interchange rate on US-issued consumer and commercial credit transactions would reduce Mastercard's interchange revenue on those transactions, a cost to shareholders that is weighed against the removal of ongoing litigation risk.
Key points
- Both Mastercard and Visa agree to a 10 basis point reduction in the average systemwide effective interchange rate on US-issued consumer and commercial credit transactions at US merchant locations.
- The interchange reduction is designed to act as a cap for five years.
- The agreement is subject to final approval by the Eastern District Court of New York, expected most likely in late 2026 or early 2027.
- Mastercard does not admit to any improper conduct regarding the plaintiffs' allegations.
The filing
Written by AI on Nov 8, 2026, 2:16 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on November 10, 2025.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.