Julpo | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
When it comes time to make a purchase, which credit card<\/a> you use could soon determine how much you pay.<\/p>\n A new settlement announced this week<\/a> would end a longstanding dispute between businesses and Visa and Mastercard over credit card \u201cswipe\u201d fee practices.<\/p>\n Swipe fees are charged to retailers, service providers and other merchants each time a customer uses their card<\/a>. Banks and card companies typically levy about 2% or more for every transaction, according to the National Retail Federation.\u00a0<\/p>\n Previously, merchants had to \u201chonor all cards\u201d on a network \u2014 for example, if they accept one Visa credit card, then they must accept all Visa cards regardless of swipe fee rates charged. Under the proposed settlement, they can reject those cards with high fees to save their bottom line. What\u2019s more, merchants may be able to charge customers different fees<\/a> depending on which credit card they use.\u00a0<\/p>\n \u201cThis is a fight between banks and merchants, and consumers are caught in the middle, said Ted Rossman, senior industry analyst at Bankrate.<\/p>\n<\/div>\n Roughly 175 million consumers have at least one credit card, making it the most common method of making a purchase, according to\u00a0TransUnion<\/a>. Rewards cards are by far the most popular kind of plastic \u2014 about 85% of the credit cards issued today are rewards cards, the National Retail Federation also found.<\/p>\n<\/div>\n Merchants have been battling with card issuers over what they\u2019ve called a \u201ccartel-like pricing practice\u201d for two decades, according to Doug Kantor, an executive committee member at the Merchants Payments Coalition.\u00a0<\/p>\n In 2005, retailers and other merchants filed a class-action lawsuit against Visa and Mastercard, which control 80% of the market, alleging that their fees and acceptance terms were anti-competitive.\u00a0<\/p>\n Monday\u2019s settlement is the potential conclusion after 20 years of litigation over the fees that banks and credit card companies charge to process payments. \u201cWe believe that this is the best resolution for all parties, delivering the clarity, flexibility and consumer protections that were sought in this effort,\u201d a spokesperson for Mastercard said in a statement.\u00a0Visa did not respond to a request for comment.<\/p>\n<\/div>\n Under the settlement, credit cards would be classified into three categories:<\/p>\n Merchants could then choose which categories to accept, but must still accept all cards within a category. Merchants can also add a surcharge of up to 3% to customers\u2019 bills\u00a0for\u00a0paying by credit card. Finally, the settlement caps the fees that banks, as well as Visa and Mastercard, can charge merchants.<\/p>\n The proposed settlement is still months away from being put into practice, and it must be approved by the court, which already rejected a previous agreement. But eventually, experts say, changes may be in store for credit card users.\u00a0<\/p>\n<\/div>\n The settlement could make it more common to have certain rewards cards rejected at some retailers, similar to how Costco<\/a>Read more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
The longstanding battle over swipe fees<\/h2>\n
\n
![\"Consumers'](\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108191784-17563785621756378560-41385286152-1080pnbcnews.jpg?v=1756378562&w=750&h=422&vtcrop=y\")