Why Credit Card Users At Walmart And Target Could Start Paying More

Credit card users at Walmart, Target, and other big retailers could start paying more because a proposed legal settlement would let stores add or increase surcharges on certain Visa and Mastercard credit cards, and even refuse higher‑cost card types altogether.

What is changing

• Visa and Mastercard have reached a proposed settlement with U.S. merchants after roughly two decades of antitrust litigation over “swipe” or interchange fees.

• The settlement (pending court approval) slightly lowers average swipe fees but, more importantly, relaxes rules so merchants are no longer forced to “honor all cards” in the same way.

How this hits Walmart and Target

• Large chains like Walmart and Target are key players in this litigation and would gain more flexibility to decide which Visa and Mastercard products they accept and how they price them at checkout.

• These retailers could introduce “tiered acceptance,” where some premium or high‑rewards cards are either rejected or allowed only with extra fees attached.

Why customers may pay more

• Merchants would have broader power to add surcharges on card transactions, and to vary those surcharges by card type to recoup higher processing costs on rewards or premium cards.

• That means two shoppers could use different Visa or Mastercard credit cards at the same store and see different fees, with the holder of the more expensive‑to‑process card paying more at the register.

Other possible consequences

• Some retailers may completely decline certain high‑fee Visa or Mastercard products, forcing customers to switch cards or payment methods (for example, to debit, cash, or a cheaper credit card) to avoid issues at checkout.

• Surveys suggest many consumers would consider changing where they shop if surcharges feel too high, so big chains may roll changes out cautiously or only in specific states where surcharging rules are more permissive.

What cardholders can do

• Favor lower‑fee options like debit or non‑premium credit cards at big box stores if surcharges appear on receipts, and check store signage or receipts for any new “credit card fee” lines.

• Keep a backup payment method ready, since a particular Visa or Mastercard—especially a rich rewards card—could be declined under the expanded merchant discretion in the settlement.