Preliminary MDL Settlement Approval Represents a Key Step to the Finish Line

Research evidence excerpt

Preliminary MDL Settlement Approval Represents a Key Step to the Finish Line

Payments & Processors

Preliminary MDL Settlement Approval Represents a June 9, 2026

Key Step to the Finish Line

●Earlier this evening, Judge Cogan granted preliminary approval of the revised TICKER RTG PT % UP

settlement between merchants and the networks in the multi-decade MDL AXP PP NA NA

on credit card interchange. Importantly, Cogan noted he is likely to grant final COF OP $255 39.1% MA OP $665 34.3%

approval, which we view as a positive clearing event given some investors had V OP $395 21.5%

remained skeptical that any revised deal would ultimately move forward. OP=Outperform, PP=Peer Perform,

UP=Underperform, NR=Not Rated

●Interchange Cut Less than Feared: Though the revised settlement is slightly

more onerous than the original deal rejected in 2024 (average interchange

reduction of 10bps for five years vs. 7bps previously), the outcome appears

better than some still feared given many investors had worried about a

substantial reduction following the last rejection. We view the 10bps cut and

Darrin Peller

standard consumer interchange at 125bps as a manageable outcome and a dpeller@wolferesearch.com

net positive for the issuing banks, and indirectly V/MA, given the removal of (646) 582-9310

View Darrin’s Research a key legal overhang. View Comp Table

●Honor All Cards Update: The settlement would effectively repeal the "Honor Cameron Dyer

All Cards" rule; we highlight this appears to have been an important factor in cdyer@wolferesearch.com646-582-9337

Cogan’s approval. That said, the settlement maintains "Honor All Issuers",

Scott Wurtzel

whereby merchants cannot accept one issuer’s Visa/Mastercard products swurtzel@wolferesearch.com

while rejecting another’s. (646) 582-9313

Paul Obrecht