MDL 1720 Settlement Granted Preliminary Approval; Still Favorable for V/MA

Research evidence excerpt

MDL 1720 Settlement Granted Preliminary Approval; Still Favorable for V/MA

FinTech & Digital Assets

EQUITY RESEARCH Industry Report

June 9, 2026

MDL 1720 Settlement Granted Preliminary Approval;

Companies mentioned

Ticker Price Rating Target Still Favorable for V/MA

MA $495.24 Overweight $650.00

V $325.05 Overweight $410.00 Revised MDL 1720 settlement granted preliminary approval. In the latest

chapter of the decades-long Brooklyn Merchant Litigation (MDL 1720), U.S.

Research Analysts: District Judge Brian Cogan granted preliminary approval to a new proposed

Ramsey El-Assal (or "Amended") settlement. Recall that the prior settlement was rejected 212-915-1239

Ramsey.El-Assal@cantor.com in 2024 by Judge Margo Brodie, who concluded that it failed to provide

Shray Gurtata merchants relief from the "Honor All" Cards rule, and also that its primary

212-829-4964 concessions regarding surcharging and a reduction in default interchange

Shray.Gurtata@cantor.com

rates were insufficient. The court has now determined that the Amended Ryan Campbell

212-829-4962 settlement—which repeals the "Honor All" Cards rule, provides additional

Ryan.Campbell@cantor.com surcharging relief, and increases the reduction in default interchange

Joseph Jarrard rates—adequately addresses these concerns and has granted preliminary

212-915-1038 approval. Joseph.Jarrard@cantor.com

We view the preliminary approval as net neutral/positive for V/MA.

Importantly, we note that the proposed reduction in interchange impacts

issuing-bank economics, rather than V/MA network fees. Furthermore,

implementing card-steering, surcharging, and discounting mechanisms

at the point-of-sale is operationally and technologically complex, in our

view. And, we believe merchants risk potential friction at checkout that