Trump Endorsement Fuels Push for Credit Card Fee Reform in Crypto Bill
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A coalition of merchants and consumer groups is urging the Senate Agriculture Committee to include the Credit Card Competition Act (CCCA) in upcoming cryptocurrency marketplace legislation, bolstered by a recent endorsement from former President Donald Trump. The move aims to lower swipe fees – the charges merchants pay to accept card payments – and inject competition into the credit card industry.
The Merchants Payments Coalition (MPC) and nearly 350 merchant trade associations have voiced strong support for the CCCA, arguing it’s crucial for the health of Main Street businesses and American consumers. “We call on you to choose Main Street merchants and American consumers over Wall Street megabanks and global card networks,” the organizations stated in a letter to committee members.
Small Retailers Bear the Brunt of Rising Fees
The coalition emphasizes that small retailers are disproportionately affected by increasing swipe fees, which have climbed 70% since the start of the pandemic, reaching a record $187.2 billion in 2024. These fees represent merchants’ highest operating cost after labor, adding nearly $1,200 annually to the average family’s expenses. “Small retailers have the narrowest profit margins and fewest resources and are hit hardest by continuing unjustified increases in swipe fees,” a representative from the MPC explained.
CCCA Gains Momentum in Senate
Senators Roger Marshall (R-Kan.) and Richard Durbin (D-Ill.), the primary sponsors of the CCCA, have been joined by Senator Peter Welch (D-Vt.) in proposing an amendment to incorporate the Act into the broader crypto bill. The Senate Agriculture, Nutrition and Forestry Committee is scheduled to vote on the crypto marketplace legislation, including the proposed amendment, on Tuesday.
This action follows Trump’s public call to action earlier this month, where he described the current swipe fee system as an “out of control Swipe Fee ripoff” and urged Congress to address the issue. The CCCA has since been reintroduced in both the House and Senate.
Antitrust Enforcement, Not Regulation, in Amended Bill
The Marshall-Durbin amendment mirrors the core principles of the reintroduced CCCA, but differs in its enforcement mechanism. Instead of relying on Federal Reserve regulation, the amendment proposes utilizing antitrust remedies to ensure compliance. Importantly, the requirements would apply only to financial institutions with assets exceeding $100 billion, largely exempting community banks and credit unions.
Broad Support Across Sectors
Support for the CCCA extends beyond the retail sector. Almost 2,000 companies, alongside consumer advocacy groups, labor organizations, and proponents of free market competition, have voiced their backing. A recent letter from consumer, antimonopoly, and small business groups to Congress highlighted the “urgently needed” reform to alleviate the financial burden on businesses and consumers. The Coalition of Large Tribes, representing over 50 Native American tribes, also expressed “strong support” for the inclusion of the CCCA.
How the CCCA Would Work
Currently, Visa and Mastercard control approximately 80% of the credit card market, dictating swipe fees and restricting transaction routing to other networks. The CCCA and the proposed amendment would mandate that banks with over $100 billion in assets enable cards to be processed through at least two unaffiliated networks – Visa or Mastercard, alongside a competitor such as NYCE, Star, or Shazam.
Merchants would then have the power to choose which network to use, fostering competition based on fees, security, and service. Proponents estimate this change could save merchants and consumers $17 billion annually, without impacting card rewards or compromising security. Consumers would continue to use their existing cards, and the vast majority of banks and credit unions would remain unaffected.
The MPC continues to advocate for a more competitive and transparent card system, believing it is essential for a fair economic landscape for both consumers and merchants. You can follow the MPC on Twitter, Facebook, or LinkedIn for the latest updates on swipe fees and the CCCA.
