Congress Reintroduces Credit Card Competition Bill
January 22, 2026 | Last Updated on: January 22, 2026
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The Credit Card Competition Act of 2025 was introduced by a bi-partisan group in the Senate a day after President Donald Trump announced his support for the bill via his social media platform, Truth Social. The bill has been supported by both small business advocacy coalitions such as the National Federation of Independent Business and the National Small Business Association.
The bill was introduced by Sen. Roger Marshall (R-KS) and Sen. Dick Durbin (D-IL) and in the House by Rep. Zoe Lofgren (D-CA) and Rep. Lance Gooden (R-TX). Versions of this bill, however, have been introduced in the Senate every year for the past four years, but each year never got past committee.
If passed, the bill would require the two largest credit card processing companies, Visa and Mastercard, to offer merchants at least two unaffiliated processing networks. The aim of the bill is to cut down on excessive swipe fees charged to businesses that offer customers who pay by credit card. Total profits from credit card swipe fees in 2024 was $234.6 billion in 2024, according to the Merchants Payments Coalition, and is expected to be even higher when 2025 information is tallied.
What it Means for Small Businesses
Small businesses typically pay 1.5% to 3.5% per credit card transaction, according to NerdWallet. These fees either cut into their profits or force certain businesses, such as restaurants, to pass along the cost to their customers, thus potentially driving away business. According to the NFIB, the current system amounts to “cartel style rate setting and removes market forces from setting competitive rates.”
Passing the bill would force credit card processing companies to “compete for business just like small businesses do every day. Federal antitrust regulators should also investigate the interchange rate-setting practices of Visa and Mastercard for potential violations.”
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