Major retail trade groups are pushing back following a federal judge’s preliminary approval of a proposed class-action antitrust settlement involving Visa and Mastercard over credit card swipe fees. Both the National Grocers Association (NGA) and the National Retail Federation (NRF) issued statements expressing deep disappointment, arguing that the agreement fails to fix a broken, non-competitive payments market.
The proposed settlement, which received initial approval from U.S. District Judge Brian Cogan, is intended to resolve a long-running legal battle over the fees merchants pay to accept credit cards. However, industry leaders argue the deal provides no real economic relief for independent grocers, mainstream retailers, or everyday consumers.
“No Meaningful Relief” for Main Street
The National Grocers Association, representing the independent supermarket industry, noted that the court failed to address key objections that could have driven genuine market competition.
“The National Grocers Association is disappointed that the court has chosen not to address the reasonable concerns raised by objectors and improve the proposed B2 settlement in a way that would meaningfully increase competition and reduce swipe fees for merchants and consumers,” the NGA stated.
The NGA highlighted that the current payments market allows the nation’s largest financial institutions to benefit at the expense of family budgets. Rather than relying on court settlements, the association is urging lawmakers to pass the bipartisan Credit Card Competition Act (CCCA) to inject true competition into the market and lower costs for Main Street businesses.
The NRF mirrored these concerns, stating that the preliminary approval leaves an unfair system completely intact, allowing credit card giants to dictate costs unchallenged.
“Retailers continue to face excessive and ever-increasing swipe fees in a broken payments market that lacks competition,” the NRF stated. “The proposed settlement offers no meaningful relief and leaves intact the underlying system that enables Visa and Mastercard to dictate the rules and costs that merchants and consumers must bear.”
The Road Ahead
Despite the setback, both organizations vow to keep fighting for long-term reform. The NRF indicated it will closely review the court’s order and actively participate in the next phase of the legal proceedings to pursue a fairer marketplace.
Meanwhile, the push for legislative intervention is gaining momentum. The NGA emphasized that with strong bipartisan backing in Congress and the explicit endorsement of President Trump, lawmakers have a critical window of opportunity to pass the CCCA and deliver lasting swipe fee relief to the retail sector.
Related Article: NRF Applauds Court Ruling on Debit Card Swipe Fee Cap
For Context
Credit and debit card swipe fees have increased 80% since the pandemic, reaching a record $198.25 billion last year, shared the Merchants Payments Coalition. For most merchants, the fees are the highest operating cost after labor and too steep to absorb. As a result, they drive up prices by more than $1,200 a year for the average family.
Visa and Mastercard hold a stranglehold on 80% of the market, and both companies centrally set the swipe fees that card-issuing banks charge. They maintain this dominance by actively blocking other networks from processing transactions—even networks that offer lower fees and better security.
The Credit Card Competition Act (CCCA) changes this dynamic. Under the bill, giant banks with at least $100 billion in assets must equip their cards to run on at least two unaffiliated networks: Visa or Mastercard plus a competitor like NYCE, Star, or Shazam. This measure will kickstart long-overdue competition over fees, security, and service, saving merchants and consumers $17 billion a year. President Donald Trump endorsed the CCCA in January, noting that lawmakers must pass it “to stop the out of control Swipe Fee ripoff.”