Here’s how the Visa Mastercard swipe-fee

Visa and Mastercard have reached a proposed settlement in a long-running legal fight with merchants and retailers that could determine which credit cards stores accept and whether shoppers face additional surcharges at checkout.

The deal, which still requires court approval, would slightly reduce interchange, or “swipe,” fees — the charges merchants pay each time a customer uses their card. It would also modify a long-standing rule that dictates which credit cards merchants must accept.

If approved, those changes could have ripple effects for consumers, who may find their preferred credit card no longer accepted — or face new fees at checkout.

Swipe fees are a major source of revenue for Visa and Mastercard, which collected a record $111 billion from them last year, according to the National Retail Federation, the largest U.S. retail trade group.

The NRF criticized the settlement in a statement, arguing that the proposed 0.1% reduction in swipe fees doesn’t go far enough.

Once again, this proposal is all window dressing and no substance,” said Stephanie Martz, NRF chief administrative officer and general counsel.

A spokesperson for Mastercard told NewsNation the settlement represents “the best resolution for all parties” and said it will provide smaller merchants with “more acceptance choices, reduced costs and simplified rules.” Visa did not respond to a request for comment.

Here’s what the proposed deal could mean for consumers.