US Senate Nears Vote on Credit Card Swipe Fee Reform

The Credit Card Competition Act (CCCA), introduced by Senators Roger Marshall (R-Kansas) and Richard Durbin (D-Illinois), aims to increase competition in credit card processing by requiring the largest US banks to allow credit card transactions to be processed over at least two unaffiliated payment networks. Currently, Visa and Mastercard control over 80% of the market and restrict processing to their own networks, leading to high swipe fees that cost retailers and consumers significantly. Retail groups like the National Retail Federation (NRF) and the National Association of Convenience Stores (NACS) support the legislation, emphasizing that swipe fees reached a record $187.2 billion in 2024, adding nearly $1,200 annually to the average household’s expenses. The CCCA amendment has been proposed to be included in the broader GENIUS Act, a cryptocurrency bill, with a Senate vote potentially occurring soon. Advocates argue that increased competition will lower transaction fees, benefit small businesses, and relieve consumers from excessive costs. Industry groups are mobilizing grassroots support to push lawmakers to prioritize this reform amid ongoing efforts in Congress.