Summary:
- The Credit Card Competition Act was reintroduced in Congress Tuesday.
- The bill aims to lower swipe fees in a Visa- and Mastercard-dominated market.
- AAHOA cites the measure’s potential to curb costs for small businesses and consumers.
THE CREDIT CARD Competition Act is back in Congress, aiming to lower credit card swipe fees in a market dominated by Visa and Mastercard. President Donald Trump endorsed the bill, claiming it would stop the out-of-control swipe fee rip-off.
The legislation would increase competition in the credit card processing market by requiring large banks with more than $100 billion in assets to enable at least two unaffiliated card networks, including one outside Visa and Mastercard. The measure is designed to lower swipe fees for small businesses and pass savings on to consumers.
Hotel associations, including AAHOA, also supported the bill, saying it would help curb excessive swipe fees that continue to drive up costs for small businesses and consumers.
"Uncontrolled swipe fees are a growing burden for hotel owners and small businesses nationwide," said Kamalesh “KP” Patel AAHOA chairman. "The Credit Card Competition Act is a practical, bipartisan solution that restores competition and helps owners better manage costs."
Sens. Roger Marshall of Kansas and Dick Durbin of Illinois reintroduced the bill Tuesday. A companion bill also was introduced in the House by Reps. Zoe Lofgren of California and Lance Gooden of Texas.
“Everyone should support great Republican Sen. Roger Marshall’s Credit Card Competition Act in order to stop the out-of-control swipe fee rip-off,” Trump wrote in a Tuesday post on Truth Social.
Trump’s endorsement follows his demand that credit card interest rates be capped at 10 percent.
Marshall and Durbin originally introduced the bill in the previous Congress.
"This would increase competition in the credit card processing market and help lower swipe fees," the senators said in a statement.
“It’s time to bring real competition to a credit card network market dominated by Visa and Mastercard—and drive down the cost of everyday goods,” Marshall said.
“By bringing real competition to credit card networks, which is currently dominated by the Visa-Mastercard duopoly, we can reduce swipe fees and hold down costs for Main Street merchants and their customers,” Durbin said.
Visa and Mastercard control about 85 percent of the credit card market and refuse to negotiate fair terms with Main Street merchants, according to media reports. The average American family pays nearly $1,200 per year in swipe fees, while banks profit $111.2 billion annually from swipe fees.
Durbin said Americans are struggling with everyday purchases like groceries and gas and credit card swipe fees inflate those already exorbitant prices.
“By bringing real competition to credit card networks, which is currently dominated by the Visa-Mastercard duopoly, we can reduce swipe fees and hold down costs for Main Street merchants and their customers,” he said. “Let’s pass the Credit Card Competition Act as soon as possible.”
Laura Lee Blake, AAHOA president and CEO, praised Senators Marshall and Durbin and Representatives Gooden and Lofgren for their leadership and persistence on the issue.
“We appreciate President Trump's endorsement of this bill," she said. "AAHOA urges Congress to move quickly to pass this legislation and deliver relief to Main Street businesses."
In December, the International Franchise Association led a coalition of more than 100 business, advocacy and diversity groups urging Congress to support the bipartisan American Franchise Act, H.R. 5267. Industry groups, including AAHOA, the American Hotel & Lodging Association and the U.S. Travel Association, signed the IFA-coordinated letter backing the legislation.
