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When it comes time to make a purchase, which credit card you use could soon determine how much you pay.

A new settlement announced this week would end a longstanding dispute between businesses and Visa and Mastercard over credit card “swipe” fee practices.

Swipe fees are charged to retailers, service providers and other merchants each time a customer uses their card. Banks and card companies typically levy about 2% or more for every transaction, according to the National Retail Federation. 

Previously, merchants had to “honor all cards” on a network — 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’s more, merchants may be able to charge customers different fees depending on which credit card they use. 

“This is a fight between banks and merchants, and consumers are caught in the middle, said Ted Rossman, senior industry analyst at Bankrate.

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Roughly 175 million consumers have at least one credit card, making it the most common method of making a purchase, according to TransUnion. Rewards cards are by far the most popular kind of plastic — about 85% of the credit cards issued today are rewards cards, the National Retail Federation also found.

The longstanding battle over swipe fees

Merchants have been battling with card issuers over what they’ve called a “cartel-like pricing practice” for two decades, according to Doug Kantor, an executive committee member at the Merchants Payments Coalition. 

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. 

Monday’s settlement is the potential conclusion after 20 years of litigation over the fees that banks and credit card companies charge to process payments. “We believe that this is the best resolution for all parties, delivering the clarity, flexibility and consumer protections that were sought in this effort,” a spokesperson for Mastercard said in a statement. Visa did not respond to a request for comment.

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Under the settlement, credit cards would be classified into three categories:

  • commercial cards
  • premium cards, including rewards cards
  • standard, no-rewards cards

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’ bills for paying by credit card. Finally, the settlement caps the fees that banks, as well as Visa and Mastercard, can charge merchants.

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. 

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The settlement could make it more common to have certain rewards cards rejected at some retailers, similar to how Costco doesn’t accept American Express cards for purchases, said a person with knowledge of the thinking of a major U.S. bank.

This person, who asked to remain anonymous to speak candidly, said that the ultimate ramifications weren’t yet clear as it involves active litigation. But banks are upset at how the settlement turned out and view this as giving merchants greater leverage when it comes to future negotiations involving the cost of card acceptance.

The settlement could cause some merchants to decide not to accept rewards cards, others to start levying surcharges for their use, and banks could also scale back their rewards programs as a result, they said.

Near-term outlook: ‘Not a lot is going to change’

According to experts, it is unlikely that any retailer will choose to reject all rewards cards. Since nearly 90% of all credit card spending is on rewards cards, merchants really have no choice but to continue to accept them, Rossman said: “In the real world, not a lot is going to change.”

Rejecting some high-cost cards at the point of sale also risks alienating customers who carry them, according to Matt Schulz, chief credit analyst at LendingTree.

For that reason, the proposed settlement is “all window dressing and no substance,” the National Retail Federation’s chief administrative officer Stephanie Martz said in a statement. “The reduction in swipe fees doesn’t begin to go far enough, and the change in the honor-all-cards rule would accomplish nothing,” she said.

Longer-term outlook: More fees, fewer benefits

One potential outcome of the settlement is that retailers will tack on an extra fee for customers who pay with rewards cards to help cover the cost. “You could see a more varied approach to this, which would be surcharging,” said John Cabell, managing director of payments intelligence at J.D. Power.

But more affluent cardholders are already paying a premium. Rewards credit cards generally have higher-than-average interest rates to compensate issuers for the additional perks, in addition to an increasingly common annual fee, which can exceed $500 depending on the card, according to Rossman.

In return, customers earn cash back, miles or points, which have become a sought-after differentiator in the card market. “People love their rewards cards and especially high-income folks,” said Schulz. 

Since the settlement calls for Visa and Mastercard to lower swipe fees by 0.1 percentage point for five years, that may make it harder for card issuers to keep boosting benefits. 

“About 86% of interchange fees go to card issuers to fund credit card rewards and loyalty programs,” according to Trent Swanson, a loyalty points consulting adviser who is known as the “miles husband.” “What’s often overlooked is that the cost of running rewards programs has already been rising.”

In another scenario, merchants raise prices to cover the cost of accepting cards with higher interchange fees. “What, in fact, happens is that all of us pay these huge fees in the form of inflated prices and we don’t know it,” said Kantor. “The cash-paying customer, they get the shortest straw every time.” 

While there may not be an immediate change from the settlement, over time, if merchants start adding surcharges and rewards cards become more expensive to use at the point of sale, it could reign in the upward spiral of rewards and benefits that consumers have grown to appreciate, according to J.D. Power’s Cabell. 

Even relatively modest cards might see a reduction in offerings as well if surcharges become generally more prevalent with mid-tier and premium card groupings, Cabell said. “It is unlikely that this last announcement is the final chapter.”

— Stephanie Dhue and Hugh Son contributed to this report.

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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