The settlement reduces what Discover pays to process your transactions, but does not change your card benefits or fees
In 2024, Discover reached a settlement with the U.S. Department of Justice over how much it charged merchants to process credit card transactions. The settlement requires Discover to lower its interchange fees — the per-transaction charges that go to the card issuer when you swipe or tap your card — by a set percentage over several years. This is a legal and regulatory matter between Discover and the government, not a change to your cardholder agreement.
The settlement does not directly affect your annual fees, interest rates, rewards rates, or any other terms of your Discover card. You will not receive a refund, a credit, or a notification that something changed about your account. The reduction in what Discover collects from merchants may eventually influence how the company prices its cards or structures its rewards, but that is a business decision Discover will make separately, not a requirement of the settlement.
Key Takeaways
- Discover must lower the interchange fees it charges merchants over a multi-year period as part of a settlement with the Department of Justice.
- Your Discover card terms — including annual fees, APR, rewards rates, and benefits — do not change because of this settlement.
- You will not receive a settlement payment, refund, or credit to your account as a cardholder.
- Lower interchange fees may eventually affect how Discover prices new cards or structures rewards programs, but any such changes would be announced separately.
How interchange fees work and why the settlement matters
When you use a Discover card at a merchant, three parties are involved: you, the merchant, and Discover. The merchant pays a fee to process the transaction — this is the interchange fee. That fee goes to Discover (the card issuer), not to the merchant's bank. Interchange fees are set by the card network and vary by card type, merchant category, and transaction size.
The Department of Justice alleged that Discover's interchange fees were higher than they should be, giving the company an unfair advantage over competitors. The settlement requires Discover to reduce these fees to a lower level, which means merchants will pay less to accept Discover cards. Merchants may pass some of those savings along to customers through lower prices, or they may keep the savings as increased profit — that is their choice, and there is no requirement for them to do either.
What changes for Discover cardholders
As a Discover cardholder, you will see no when ready change. Your card will work the same way. Your rewards will post the same way. Your statement will look the same. Discover will not notify you that the settlement exists or that interchange fees have been reduced.
Over time, Discover may decide to adjust how it prices cards, structures rewards, or markets its products — but these would be business decisions made independently of the settlement. If Discover changes its card terms, it will notify you through your statement or account portal, as it does with any other change. You can then decide whether to keep the card or close it.
Why merchants care more than cardholders
Interchange fees are a significant cost for merchants, especially small businesses and restaurants that process many transactions. A lower interchange fee means lower processing costs, which can add up to thousands of dollars per year for a high-volume merchant. That is why the Department of Justice pursued the case — to reduce the cost burden on merchants, not to benefit cardholders directly.
Cardholders are not part of the settlement because they do not pay interchange fees. You pay your card issuer through annual fees (if any), interest on balances, and the value of rewards you earn. Merchants pay interchange fees. The settlement is designed to make it cheaper for merchants to accept Discover cards, which may eventually make Discover cards more attractive to merchants — but that is a secondary effect, not a direct benefit to you.
How this settlement compares to other card network cases
Visa and Mastercard have faced similar antitrust challenges over interchange fees. In 2015, Visa and Mastercard settled a long-running case with merchants and agreed to allow merchants to impose surcharges on credit card transactions (though most do not). The Discover settlement follows a similar pattern: the card network agrees to lower fees in exchange for resolving the government's claims.
These settlements do not typically result in refunds to cardholders or changes to card terms. They are regulatory outcomes that affect the economics of card processing, not the consumer experience of using a card. If you hold a Visa, Mastercard, or Discover card, the settlement does not change how you use it or what it costs you.
What to do if you have questions about your Discover account
If you want to confirm that your Discover card terms have not changed, you can log into your account online or call the number on the back of your card. Discover's customer service team can review your current APR, annual fee, rewards rate, and any other terms specific to your card.
If you are considering opening a new Discover card or switching from another card, the settlement does not change your decision-making process. Compare Discover cards to other options based on their current rewards rates, annual fees, sign-up bonuses, and benefits — the same factors you would evaluate before the settlement. The settlement is a background regulatory matter that does not affect the value proposition of any card.
Frequently Asked Questions
Will I get a refund or settlement payment as a Discover cardholder?
No. The settlement is between Discover and the Department of Justice. Cardholders are not part of the case and do not receive payments, credits, or refunds. Only merchants benefit from lower processing costs.
Does this settlement mean Discover cards will have better rewards?
Not necessarily. Discover may eventually adjust its rewards structure or pricing, but that would be a separate business decision. The settlement does not require Discover to increase rewards or lower fees. Any changes would be announced through your account or statement.
Should I close my Discover card because of this settlement?
No. The settlement does not change your card's terms or benefits. If you like your Discover card's rewards, benefits, or APR, the settlement gives you no reason to close it. Keep or close the card based on whether it still meets your spending needs.
Does this settlement affect how merchants treat Discover cards?
Possibly, over time. Lower interchange fees may make merchants more willing to accept Discover cards or promote them to customers. But this is a long-term effect and is not may provide. Most merchants already accept Discover, so you are unlikely to notice a difference in where you can use your card.
Are other card networks facing similar settlements?
Visa and Mastercard have faced antitrust cases over interchange fees in the past. The Discover settlement follows a similar pattern. These cases are ongoing regulatory matters and do not directly affect cardholders' terms or benefits.