The US Senate is expected to consider the Credit Card Competition Act (CCCA) as an amendment to cryptocurrency legislation, a move that retail groups say could help reduce consumer costs amid ongoing inflation.
The amendment is being proposed as part of the GENIUS Act, which aims to establish federal oversight of stablecoins, digital currencies pegged to traditional assets.
Swipe fees under scrutiny as prices remain high
The National Retail Federation (NRF) has endorsed the inclusion of the CCCA in the cryptocurrency bill, arguing that the measure would increase credit card market competition and reduce transaction fees, commonly referred to as swipe fees.
These fees, set primarily by Visa and Mastercard, currently range between 2% and 4% per transaction and are applied by all issuing banks using those networks.
Retailers paid a record $187.2 billion in swipe fees in 2024, according to NRF estimates. These costs, which are typically passed on to consumers, are said to add nearly $1,200 annually to the average household’s expenses.
The NRF believes that increased competition in credit card processing could provide relief to both retailers and consumers.
Proposed legislation targets market dominance
The Credit Card Competition Act, introduced by Senators Roger Marshall (R-Kansas) and Richard Durbin (D-Illinois), would require the largest US banks — those with assets of $100 billion or more — to enable credit card transactions to be processed on at least two unaffiliated payment networks.
This could include networks such as American Express, Discover, or regional debit systems like NYCE or Shazam.
Currently, Visa and Mastercard control over 80% of the credit card market and restrict processing to their own networks. The legislation aims to dismantle these limitations, allowing merchants to choose their preferred network.
Supporters argue this would prompt greater competition in transaction processing, ultimately lowering costs and improving service quality.
Impact on consumers and small institutions expected to be limited
The proposed changes would not affect smaller financial institutions, including local community banks and credit unions. Nor would they alter credit card rewards programmes, which are determined by the issuing banks rather than the networks that process the transactions.
The CCCA is receiving growing bipartisan support and is being considered at a time when Congress is increasingly focused on consumer protection and financial market reform.
By aligning with stablecoin legislation, lawmakers hope to address multiple issues in the financial services sector within a single legislative effort.
Retailers and industry analysts will be watching closely as the Senate deliberates the amendment, which could reshape the landscape of credit card processing and impact millions of transactions daily.
