United States payment landscape and regulatory shifts

In the United States, the consumer payment landscape is experiencing shifts due to regulatory disputes, changing currency practices, and rising processing costs.

A legal challenge, Linney’s Pizza v. the Board of Governors of the Federal Reserve, is currently moving through the 6th Circuit Court of Appeals. The case examines whether the Federal Reserve’s debit interchange fee cap improperly included ineligible expenses, a ruling that could affect major financial institutions such as JPMorgan Chase, Bank of America, and Wells Fargo.

Following the cessation of penny production by the U.S. Mint, merchants are increasingly utilizing cash rounding to the nearest nickel. While the bipartisan Common Cents Act has passed both the House and Senate to provide federal guidance for this practice, the legislation still requires reconciliation.

Additionally, merchants are accelerating the use of credit card surcharges to offset processing fees, which averaged 2.35 percent in 2024. While Visa and Mastercard have allowed such surcharges since 2013, their adoption has increased as cash usage declines. Regarding technological trends, Visa CEO Ryan McInerney noted that while artificial intelligence is utilized for shopping and comparisons, ‘autonomous agentic payments’ have not yet achieved widespread use.