Six Things Merchants Should Watch in 2026

In 2025 there were some big developments in credit card processing that continue to reverberate into 2026. Here is Verisave's take on six topics merchants should know about because they have significant implications for processing fees in 2026 and beyond.

CEDP

In 2025, Visa upended processing rules with the launch of its Commercial Enhanced Data Program (CEDP). The new program, which is the biggest processing rule change in the last 25 years, changed the requirements that must be met to receive the lowest interchange rates on Small Business and Commercial Cards. For years many merchants achieved discounted interchange rates by submitting fabricated data. CEDP is designed to put an end to these practices. See Verisave's CEDP Information Hub for more information.

Verisave's Take

Detailed transaction data is important because it helps prevent fraud, so pushing merchants to improve data quality is a good idea that benefits all payments system participants. The problem is the new rules are complex and the rollout by Visa was botched, confusing processors and merchants alike, many of whom are still struggling to comply with the new rules. Verisave knows merchants who are complying with the new rules who are not receiving the discounted rates, and even worse Verisave knows of processors and gateways that are focused on finding new ways to game the system with fabricated data, instead of focusing on ways to help their merchants become compliant. See Beware of Noncompliant CEDP Solutions for more information.

VAMP

The Visa Acquirer Monitoring Program (VAMP), which was rolled out in 2025, has changed the way fraud and chargebacks are measured and monitored. It replaced the Visa Dispute Monitoring Program (VDMP) and the Visa Fraud Monitoring Program (VFMP) with a new framework. It also added risk thresholds for acquirers for the first time. Merchants and acquirers who exceed the defined risk thresholds started to incur fees in October 2025. For more information on VAMP see Verisave's VAMP Overview.

Verisave's Take

Taking proactive measures to reduce disputes and fraud is good business practice. Not only does it improve customer satisfaction, but it also helps the payments system function smoothly. That said, merchants need to be alert and understand the way the VAMP ratio is calculated (see Verisave's VAMP Overview for details) so that they do not inadvertently find themselves in a position where they are incurring penalties. Merchants may also find that processors are putting more pressure on them to reduce their VAMP ratios because processors now have risk thresholds for their portfolios.

Proposed Visa/Mastercard Settlement

In November 2025, Visa and Mastercard announced a revised $38 billion settlement that stems from a 2005 class-action lawsuit by merchants that accused them and the banks that issue their payment cards of violating antitrust laws, causing merchants to pay excessive fees. The settlement was put forth to replace a $30 billion proposed settlement that the Court rejected in 2024. In addition to offering a reduction in interchange fees, the proposed settlement gives merchants the ability to pick and choose which types of Visa and Mastercards they want to accept, and it expands their ability to surcharge. For more details see Visa and Mastercard's Proposed $38B Settlement.

Verisave's Take

From a merchant perspective, the new settlement definitely improves upon the 2024 proposal that was rejected by the Court. Doing away with the "honor all cards rule" which allows merchants to refuse cards, such as reward cards which carry higher interchange rates, is a big concession and it is rumored that card issuers are not happy with this development. Together the interchange reduction and rule changes generate significant value for merchants, but merchant advocacy groups say the deal is inadequate. One piece of evidence they cite is the fact that in aggregate, merchants are paying more fees than ever before, but that is due in part to consumers shifting away from cash to credit cards.

Illinois Interchange Fee Prohibition Act

In 2024, the state of Illinois passed the Interchange Fee Prohibition Act, which prohibits the collection of interchange fees on sales taxes, excise taxes, and tips if a merchant elects to separate out those charges from the price of a purchase. It also prohibits participants involved in an electronic payment transaction (except the merchant) from transferring or using data from that transaction except to facilitate or process the transaction, or as required by law. In 2024, a preliminary injunction which covers nationally chartered banks, federal savings associations, and out-of-state banks doing business in Illinois was put in place. Plaintiffs have asked the court to extend that injunction so that all financial institutions, including Illinois chartered banks, federal and state credit unions and the payment card networks are exempt from the law. Oral arguments were held in late 2025. For more information see Verisave's Illinois IFPA Update.

Verisave's Take

The IFPA was passed by the Illinois Legislature in a last-minute deal as part of a larger budget bill – the Illinois Retail Merchants Association negotiated the deal when legislators capped a tax refund retailers can claim at $1,000/month. The fact that the law was not thoroughly vetted shows – it is clear it violates a number of federal statutes, which is probably the reason many other states that considered similar legislation after the IFPA was passed did not pursue it. Further evidence of the law's flaws is the fact that the preliminary injunction in place already exempts about 90% of card transactions in the state from the IFPA, according to the Electronic Transactions Association.

The Federal Reserve & Debit Card Fees

In late 2025, contradictory rulings by two different federal courts created uncertainty regarding the validity of the framework the Federal Reserve uses to set interchange rates for debit card transactions. One ruling invalidated the framework while the other ruling upheld it. The Federal Reserve has appealed the decision that invalidated the framework. This effectively puts a hold on the Fed's 2023 proposal to change the methodology used to determine the debit card interchange fee cap, which would have lowered the cap by 30%. For more information see Regulatory Uncertainty for Federal Reserve Debit Interchange Framework and Federal Reserve Proposes Reducing Debit Card Interchange Fees. For data the Fed released in December 2025 regarding debit card processing fees see Federal Reserve's Biennial Debit Card Report Findings.

Verisave's Take

What a mess. There is no way this is going to be resolved quickly. The courts are slow in the best of times, and this will be even worse because the contradictory rulings were by courts in different federal circuits, which introduces yet another element of complexity into the mix. It is hard to believe this will all be resolved in 2026.

Processor and Issuer Consolidation

Consolidation continues, not just via mergers and acquisitions but also via SaaS companies that add payment integrations, which effectively reduce the number of processing options available to merchants. Two particularly significant consolidation events occurred in 2025 — Global Payments announced it is acquiring Worldpay and Capital One closed its acquisition of Discover. For more details see: Global Payments to Acquire Worldpay and Regulators Approve Capital One Acquisition of Discover.

Verisave's Take

Consolidation will continue throughout the payment system in 2026. This will leave merchants with fewer options and probably higher fees, as processors have raised fees post-acquisition in the past. The effects of the Worldpay acquisition will become more apparent in the second half of 2026 as the transaction is supposed to close in the first half of the year. As for Capital One's acquisition of Discover, it is still unclear what impact that will have. Will Capital One choose to follow in Visa and Mastercard's footsteps and maintain the status quo or will it wield its new market power in disruptive ways? It remains to be seen.