For more than two decades, retailers have challenged Visa and Mastercard over what many consider anticompetitive credit card swipe fee practices. Now, a proposed legal settlement intended to resolve years of litigation is drawing significant opposition from merchant organizations that argue it falls short of delivering meaningful reform.

The National Association of Convenience Stores (NACS), joined by numerous retail trade associations, is urging the court to reject the proposed agreement, warning that it would provide only temporary financial relief while limiting merchants' ability to challenge payment network practices in the future.

What's at Stake?

Every time a customer pays with a credit card, the merchant pays a processing fee—commonly referred to as a swipe fee or interchange fee. These fees represent one of the largest operating expenses for many retailers and have long been a point of contention between merchants and the major card networks.

Retail groups argue that Visa and Mastercard's market dominance has allowed swipe fees to increase over time while giving merchants little ability to negotiate rates or network rules.

The proposed settlement is intended to resolve years of litigation surrounding these practices.

Why NACS Opposes the Settlement

While the agreement includes a temporary reduction in swipe fees, NACS believes the concessions come at too high a price.

According to the association, retailers would be required to waive significant legal claims against Visa and Mastercard while receiving only limited, short-term relief. More importantly, NACS argues the proposal fails to address the underlying payment network rules that have contributed to rising processing costs for years.

The organization believes the settlement would effectively preserve the existing system rather than creating meaningful competition or long-term reforms.

Concerns Beyond Processing Costs

For retailers, the issue extends well beyond interchange rates.

Payment networks increasingly influence how merchants conduct business through network rules, compliance requirements, and operational policies. As electronic payments continue to dominate retail transactions, many businesses believe they need greater transparency, increased competition, and more flexibility within the payments ecosystem.

NACS argues that accepting a settlement without meaningful structural reforms could leave merchants with fewer options to challenge future network practices.

Industry Coalition Seeks Court Rejection

To demonstrate widespread industry opposition, NACS is coordinating a coalition sign-on letter asking the court to reject the proposed settlement.

The association is encouraging retailers, convenience store operators, distributors, and other businesses affected by payment processing costs to join the effort before the September 1, 2026 deadline.

According to NACS, strong participation from across the retail industry will reinforce the message that merchants need lasting reforms—not temporary fee reductions that leave the existing payment structure largely unchanged.

Why This Matters for Convenience Retailers

For convenience stores and other high-volume retailers, payment processing fees directly impact operating costs and profitability.

Even modest changes to interchange fees can have significant financial implications over time. As inflation, labor costs, and regulatory pressures continue to challenge retailers, organizations like NACS argue that achieving a more competitive payments marketplace has become increasingly important.

The current settlement, they contend, represents a missed opportunity to create lasting improvements for merchants nationwide.

Looking Ahead

The court's decision on the proposed settlement could shape the payments landscape for years to come. Whether the agreement is approved or rejected, the debate highlights growing concerns among retailers over payment network policies and the long-term cost of accepting electronic payments.

For businesses that rely heavily on card transactions, the outcome will be closely watched as the industry continues to advocate for greater competition, transparency, and fairness in the payments system.

Join the Coalition

NACS is encouraging affected retailers to review the proposed settlement and consider adding their company's name to the coalition letter urging the court to reject the agreement.

Companies interested in participating should submit their names before the September 1, 2026, deadline.

Learn more and sign the coalition letter here.