Visa, Mastercard Seek Dismissal Of New Merchant Swipe-Fee Lawsuit
By CU Today Staff —
NEW YORK—Visa and Mastercard are asking a federal judge in New York to dismiss a newly filed proposed class-action lawsuit by merchants, arguing the claims are barred by the future-claims release contained in the card networks’ landmark $5.54 billion interchange-fee antitrust settlement. Law360 reported.
According to court filings, the payment giants contend the merchants are attempting an end-run around a settlement that already resolved claims arising from the challenged conduct.
The dispute is the latest chapter in the long-running swipe-fee litigation that began in 2005, when merchants accused Visa and Mastercard of conspiring with banks to inflate interchange fees and restrict merchants’ ability to steer customers toward lower-cost payment methods. The resulting settlement covered merchants that accepted Visa and Mastercard cards between 2004 and 2019 and provided approximately $5.54 billion in compensation.
Visa and Mastercard argue the new plaintiffs are bound by the earlier settlement and cannot pursue claims that fall within the scope of the release. The motion comes as the card networks are simultaneously defending a separate, revised settlement valued at an estimated $38 billion that would reduce certain interchange fees, cap some rates, and give merchants greater flexibility in deciding which categories of cards to accept, Law360 noted.
The continuing legal battles underscore the high stakes surrounding interchange fees, which merchants and retail trade groups contend remain excessive. According to court filings and merchant advocates, Visa and Mastercard swipe fees totaled approximately $118.8 billion in 2025, helping fuel ongoing challenges despite years of settlements and litigation.
Originally reported by CU Today.