1. Visa and Mastercard can now be rejected by merchants with high fees. 2. Merchants paid $83 billion in interchange fees in 2024, up 71% since 2019. 3. Settlement could lead to more surcharges for rewards credit cards. 4. Merchants face choice of rejecting higher-fee cards or losing customer sales. 5. Ongoing legal challenges may affect the settlement's final impact.
The impact of this settlement is mixed, as it may hinder credit card spending but could also reduce operational costs for retailers, balancing the effects. Historical data shows that disruptions or changes in payment processing can lead to short-lived volatility in associated ETFs, including SPY.
The settlement directly impacts consumer credit card behavior, which can affect retail spending and consequently influence SPY's performance given its exposure to retail stocks. However, the long-term implications remain uncertain due to potential future court challenges.
The immediate effects on consumer behavior could be felt quickly as merchants adjust their practices in reaction to the settlement. However, unless there are significant and sustained changes in consumer spending behavior, the long-term impact on SPY may be limited and unclear.