{"id":967,"date":"2026-06-10T15:37:09","date_gmt":"2026-06-10T20:37:09","guid":{"rendered":"https:\/\/www.paymentconsulting.net\/Blog\/wordpress\/?p=967"},"modified":"2026-06-10T15:37:09","modified_gmt":"2026-06-10T20:37:09","slug":"the-argument-over-interchange-is-far-from-settled-observers-say","status":"publish","type":"post","link":"https:\/\/www.paymentconsulting.net\/Blog\/wordpress\/?p=967","title":{"rendered":"The Argument Over Interchange Is Far from Settled, Observers Say"},"content":{"rendered":"
\n
\n

<\/i>John Stewart<\/a><\/span>\u00a0<\/i>June 10, 2026<\/span>\u00a0<\/i>Acquiring<\/a>,\u00a0Credit Cards<\/a>,\u00a0E-Commerce<\/a>,\u00a0Issuing\/Originating<\/a>,\u00a0Law and Regulation<\/a>,\u00a0Mobile Commerce<\/a>,\u00a0Point-of-sale<\/a>,\u00a0Pricing<\/a>,\u00a0Transaction Processing<\/a><\/span><\/p>\n

<\/div>\n
\n

Payments executives who may be hoping that a court ruling Tuesday will put an end to years of bitter wrangling over card-acceptance costs are likely to be disappointed, experts tell\u00a0Digital Transactions News<\/em>.<\/p>\n

\u201cThis does not end the argument. It just stifles it,\u201d says Cliff Gray, principal at Gray Consulting Ventures, a Chicago-based payments advisory. Adds Aaron McPherson, principal at AFM Consulting LLC: \u201cWhile certainly significant, the settlement by no means ends the argument.\u201d<\/p>\n

\n
\n
<\/div>\n<\/div>\n
\n
<\/div>\n<\/div>\n<\/div>\n

These opinions come as a federal court in Brooklyn on Tuesday ruled that a settlement reached between banks and merchants in a hotly contested, 21-year-old class-action case is \u201cfair, reasonable, and adequate.\u201d The court\u2019s approval, however, is preliminary, leaving merchants hopeful and banks and processors wary. The settlement projects merchants would save $38 billion in acceptance costs over five years.<\/p>\n

\n
\"\"<\/figure>\n<\/div>\n

Merchants have for decades fought\u00a0interchange<\/a><\/strong>, the cost they pay to payments acquirers and processors on each card transaction they accept. That battle has left scars, observers say. \u201cWhile the settlement grants merchants modest economic relief and additional tools to pressure the networks, and allows Mastercard and Visa to eliminate a massive, existential legal risk, nobody should expect the mega-retailers to go quietly,\u201d says Eric Grover, principal at the consultancy Intrepid Ventures.<\/p>\n

Indeed, merchants disappointed by the outcome of the case are looking for the court to deny final approval of the settlement. \u201cThe vast majority of merchants oppose this proposed settlement,\u201d says Doug Kantor, general counsel at the National Association of Convenience Stores, in a statement. \u201cWe expect many more objections to be filed that will present the court with clear evidence of the profound problems with this settlement that would make the already broken credit card market even worse.\u201d<\/p>\n

\u201cWe are hopeful that the judge will refuse to grant final approval, and that merchants will have their day in court,\u201d Kantor adds.<\/p>\n

Some observers argue the merchants may have a case, given how long the dispute has already lingered in and out of court. \u201cTen basis points [on interchange] is not much of a concession, given interchange pricing, especially given all the advances in the \u2026 years since this suit was initiated,\u201d says Gray.<\/p>\n

That could lead to further litigation, extending the case at least another two years, some experts say. \u201cI would assume if Judge Cogan grants final approval, which is more likely than not, that major merchants will appeal it, potentially pushing the ultimate resolution out into 2028,\u201d notes Grover. Brian Cogan is the presiding judge in the case.<\/p>\n

For now, some observers are calculating the possible consequences if the current resolution stands. One scenario, argues McPherson, is that consumers could \u201cface discrimination based on their choice of card, and with it the loss of their rewards, plus ever expanding- surcharges, all for the speculative benefit of lower prices in the future.\u201d<\/p>\n

Meanwhile, he points out, \u201cFederal legislation restricting credit card interchange is still under consideration.\u201d<\/p>\n<\/div>\n

Share<\/span><\/p>\n