Why using a credit card at Walmart and Target is about to cost you more

Big stores like Walmart and Target might soon make credit card shopping more expensive for customers. This comes after a November 2025 settlement between Visa, Mastercard, and US merchants, still waiting for court approval, as stated by The Wall Street Journal.

The deal lets retailers have more control over which credit cards they accept and whether they can add extra fees, called surcharges, for certain cards, as stated by The Sun. Shoppers could face two things: either extra fees on their receipts for using certain cards, or their card being rejected entirely.

Carry cash or extra cards

People may need to carry cash or multiple cards because their preferred card might not always be accepted. Currently, if a store accepts one type of Visa card, it has to accept all, but the new rules could change this. Rewards credit cards could be denied in some cases because retailers pay higher fees to credit card companies for them.


These fees paid to credit card companies are called interchange fees. Under the settlement, these fees could drop by 0.1% over the next five years, as noted by The Sun. Stores might categorize cards into types like regular credit cards, no-rewards cards, and commercial cards, and decide which ones to accept. Retailers probably won’t reject popular rewards cards completely because it could hurt their sales.

Small added fees for cards

Instead, shoppers are more likely to see small added fees: for example, 2.5% for a basic card and 3% for a rewards card. The settlement requires clear visual signs so customers know which category their card belongs to, avoiding surprises, as stated by MSN. Adding surcharges is risky for retailers because it could upset shoppers. A TD Cowen survey found about two-thirds of US consumers would switch payment methods if faced with 3–4% fees.

Experts like Sara Rathner from NerdWallet think the settlement won’t change much. Small surcharges may appear, but full bans on popular cards are unlikely. Rathner added that people are used to paying with their preferred cards without thinking much, so retailers won’t want to upset them. Some other payment quirks: Walmart still doesn’t accept Apple Pay, and Target recently had to pay $4.6 million to some customers due to a separate issue, as cited by The Sun.

FAQs:

Q1. Will Walmart or Target charge extra fees for credit cards?

Yes, some credit cards may have small extra fees called surcharges in the future.

Q2. Can my rewards credit card be rejected at Walmart or Target?

It’s possible, but top rewards cards are unlikely to be completely blocked.