The Visa and Mastercard Settlement:Understanding the Future of Credit Card Rewards

If you're one of the 71% of Americans who rely on credit card rewards to maximize your spending, a seismic shift is coming that could fundamentally change how you earn points, cashback, and travel benefits.

On November 10, 2025, Visa and Mastercard reached a historic settlement with merchants—ending a 20-year legal battle over the hidden fees that fund your favorite rewards programs. While this may sound like dry financial news, the implications for your wallet are profound.

The Hidden Costs Behind Your Rewards

Every time you swipe your credit card, merchants pay interchange fees—typically 2% to 2.5% of your purchase—that fund the rewards you've come to depend on. These fees totaled over $111 billion in 2024 alone. Now, that system is being overhauled.

What's Changing?

The settlement introduces three game-changing provisions:

• Interchange fees will be reduced and capped for up to eight years

• Merchants can now reject your premium rewards cards at checkout

• Stores can impose surcharges of up to 3% on credit card purchases

What This Means for You

Your Chase Sapphire Reserve or American Express Platinum might not be accepted everywhere anymore. That 2% cashback card could cost you money if merchants add a 3% surcharge. And banks facing reduced interchange revenue may slash rewards rates or increase annual fees.

Are Your Rewards at Risk?

Our comprehensive report breaks down exactly how this settlement affects your credit card strategy, what economists predict will happen to rewards programs, and the specific steps you should take now to protect the value of your points and cashback.

Download the full report to discover whether your favorite rewards cards will survive this transformation—and how to adapt your financial strategy before these changes take effect.

Download Your Free Report Now

visa-mastercard-understanding-future-of-cc-rewards-2025.pdf

Download PDF • 231KB