We support bipartisan effort to hold credit card networks accountable

A commonsense bipartisan bicameral bill will indirectly protect U.S. consumers — and directly protect small businesses — from unfair credit card fees.

In response to the anti-competitive practices of Visa and Mastercard that affect Americans of all demographics, in “red” and “blue” states alike, Sens. Dick Durbin (D-IL), Roger Marshall (R-KS), Peter Welch (D-VT), and J.D. Vance (R-OH) are sponsoring the recently introduced Credit Card Competition Act. A House companion will have Lance Gooden (R-TX) who co-sponsored the original bill, who is joined by Democrat Rep. Zoe Lofgren of California. Others will be announced.

This legislation would enhance competition and choice in the credit card network market. Building off of debit card competition reforms enacted by Congress in 2010, the bill would direct the Federal Reserve to ensure that giant credit card-issuing banks offer a choice of at least two networks over which an electronic credit transaction may be processed.

The Federal Reserve recently unveiled debit card routing rules in 2022, allowing circumvention of Visa and Mastercard’s duopoly. The Credit Card Competition Act would direct the Federal Reserve to require that the largest credit card-issuing banks similarly offer a choice of at least two unaffiliated networks to process credit transactions, as well as debit transactions. These actions build on the original 2010 Durbin Amendment’s reforms of the debit card market.