WHY THE CHECKOUT AISLE MAY SOON LOOK DIFFERENT
Recently, Mastercard and Visa reached a major settlement with U.S. merchants — a move that could soon allow stores to stop accepting certain types of their cards.
The reason underlies what are called “interchange fees.” These are fees that stores must pay to card networks (like Visa or Mastercard) every time a customer uses a credit card. Historically, these networks required merchants to accept all of their cards if they accepted any — a rule known as “honor all cards.”
Under the new settlement, however, merchants gain more flexibility. They may choose to reject certain cards — for instance, premium/rewards cards — or apply surcharges for using them.
Who might be affected — and how
Users of premium or rewards cards: Cards branded as premium (for example, “Visa Infinite” or “World Elite Mastercard”) often carry higher interchange fees. Under the new rules, merchants may opt not to accept those cards.
Everyday shoppers at certain stores: Even if you’re using a standard non-rewards Visa/Mastercard, individual merchants might restrict acceptance to lower-fee cards or add extra surcharges.
Small businesses and tight-margin industries: Grocery stores, convenience shops, small retailers — businesses that operate on thin margins — may find rejecting or surcharging high-fee cards especially tempting.
What’s changed — and why now
The long-standing 20-year legal battle over swipe (interchange) fees has reached a proposed settlement, giving merchants more freedom in payment-method acceptance.
As part of that agreement, average merchant fees will be slightly reduced — but merchants will also be allowed to reject certain high-fee cards or even add surcharges when customers pay with them.
This change marks a shift away from the old requirement that “if we accept Visa/Mastercard, we must accept all Visa/Mastercard cards.” That requirement is being relaxed.
What shoppers should do
Carry a backup payment method — whether a different card, cash, or debit card. As stores gain flexibility, having an alternate way to pay avoids inconvenience at checkout.
Be aware of possible surcharges — some stores may add a fee or percentage charge for credit-card use, especially reward or premium cards.
Check acceptance before checkout — if you often use premium credit cards (for points, miles, rewards), be prepared for a store to decline your card.
Use simpler cards for everyday purchases — a basic debit or standard non-rewards credit card might be more likely accepted if merchants are selective.
What this means — bigger picture
This shift could reshape the credit-card landscape. For years, rewards cards have been popular because of perks like points, miles, and cashback — often funded by the higher fees merchants pay. If merchants increasingly refuse premium cards or surcharge them, the value equation for such cards may change.
It may also push consumers and merchants back toward a more mixed payment ecosystem: cash, debit cards, or lower-fee card products. For certain industries — especially groceries, convenience stores, or small retailers — this might help them stabilize margins that were squeezed by rising fee costs.
For you, as a consumer: it means being a little more flexible — and a little more alert at the register.
