NEW YORK (AP) — Visa and Mastercard have proposed a settlement in their long-running legal dispute with merchants and retailers over how much they charge merchants to accept their cards.

The most important part of the settlement could directly impact how customers use their Visa- and Mastercard-issued credit cards, and may result in some consumers getting denied at the point-of-sale for purchases

Visa and Mastercard have been in litigation with a class-action group of merchants for nearly 20 years over the costs they impose on merchants to use their payment networks, known as interchange. A previous settlement was rejected by the judge overseeing the case last this year, requiring Visa and Mastercard’s lawyers to go back to the drawing board on the scope and size of the settlement.

The new part of the settlement announced Monday addresses the “honor all cards” rule, a cornerstone of how credit and debit cards work in the U.S.

The “honor all cards” rule states that if a merchant accepts Visa or Mastercard as a form of payment, they are required to accept all iterations of Visa and Mastercard products, regardless of who issues it and the cost to the merchant.

That has led to consternation among merchants over the years because rewards-heavy credit cards, like the Chase Sapphire Reserve or Citi Strata Elite, use a premium version of a Visa or Mastercard. For the Sapphire Reserve, Chase uses the Visa Infinite card, and for a card like Strata Elite, it’s issued as a World Elite Mastercard. These cards have gotten far more popular in the last decade.

Both a Visa Infinite and World Elite Mastercard cost more for a merchant to accept. The amount of additional interchange a merchant will pay varies on size and industry, but one example is the Visa Infinite, which can be 15 basis points (0.15%) more expensive than a Visa Signature (a mid-tier credit card) for a merchant to accept.

Under the proposed settlement, merchants could discriminate between the different tiers of Visa and Mastercard products, meaning high-reward credit card users may be declined at checkout if the merchant has opted out of accepting the higher-tier card. A merchant may also be able to pass along the higher cost to accept the rewards cards to the customer in the form of a surcharge on their bill, under the proposed settlement.

This will place merchants in the position of making a choice: accept all cards with the higher fees or reject some of the higher-fee cards and likely upset wealthier consumers who typically enjoy earning points on routine purchases.

Like the previous settlement last year, merchants would receive a temporary reduction on swipe fees for a few years. In this settlement it would be a 10 basis point reduction in swipe fees for five years, and standard credit card transactions would be processed at 1.25% of the purchase price for eight years.

When the settlement was announced on Monday, the major merchant and retail lobby groups came out in opposition, so it’s not certain whether this settlement will ultimately be the one that is finalized. Merchants and lobbyists have been pushing for years to get Congress to regulate interchange fees, as they do with debit cards. The merchant groups say this settlement does not go far enough.

“Once again, this proposal is all window dressing and no substance. The reduction in swipe fees doesn’t begin to go far enough, and the change in the honor-all-cards rule would accomplish nothing. If the courts can’t fix this, it’s time for Congress to take action,” said Stephanie Martz, chief administrative officer and general counsel for the National Retail Federation, in a statement.

The payment networks, who are ready to put the matter behind them after two decades of litigation, say this may be the best solution for the merchants to potentially avoid a drawn out trial-and-appeal process.

“We believe that this is the best resolution for all parties, delivering the clarity, flexibility and consumer protections that were sought in this effort,” a Mastercard company spokesperson said.

The settlement involves Visa and Mastercard only. American Express, which uses a closed-loop system where it's both the issuing bank and payment network for their cards, is not involved in this ongoing litigation. The settlement also does not impact debit cards.

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