Settlement Allows Merchants to Reject Certain Credit Cards

A recent settlement would allow merchants to reject credit cards that charge them higher transaction fees – namely rewards credit cards. The legal battle stems from interchange fees – fees that merchants pay credit card issuers. These interchange fees range from 2-2.5% of the purchase price and in 2024 alone resulted in merchants paying $83 billion to card issuers, up 71% from 2019. With the previous rule overturned, there could be major implications for rewards-based credit cards, however, merchants are facing the tough decision as to whether they upset their consumer bases and potentially lose sales. 

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