Senators Moreno and Lummis Back Credit Card Competition Act Against Visa, Mastercard
In brief
- Moreno and Lummis joined cosponsors Durbin, Marshall, and Welch on Credit Card Competition Act (S. 3623).
- Banks over $100 billion in assets must enable at least two unaffiliated payment networks on credit cards.
- Visa, Mastercard, and major card issuers oppose the bill; credit unions warn reduced interchange fees could hurt smaller institutions.
- Merchants' groups and former President Trump endorse the legislation to lower payment processing costs.
The mechanism
Banks with more than $100 billion in assets would have to enable at least two unaffiliated payment networks on their credit cards under the bill. This requirement aims to give merchants the ability to route payments through competing networks, theoretically driving down the fees they pay on every transaction. The core intent is straightforward: break the near-duopoly Visa and Mastercard hold over credit card processing.
Senators Dick Durbin, Roger Marshall, and Peter Welch were already on board before Moreno, Lummis, and Representative Jake Ellsworth King signed on. The expanding roster signals growing momentum for the measure.
Who backs it — and who doesn't
Former President Trump publicly endorsed the legislation before this latest round of cosponsors joined. The Merchants Payments Coalition and the National Association of Convenience Stores both voiced support, viewing the bill as relief from swipe fees that eat into retail margins.
Opposition is equally organized. Visa, Mastercard, and the largest card-issuing banks have opposed the bill. Their argument hinges on a single economic claim: interchange fees fund those rewards, and forcing cheaper network routing would starve the programs of revenue. Credit unions have also raised concerns, warning that reduced interchange revenue could hurt smaller institutions that depend on those margins.
The bigger picture
Moreno and Lummis have invested significant political capital in crypto-focused legislation, particularly the CLARITY Act. Reports have surfaced of tensions between these senators and the banking industry over delays related to that bill. The Credit Card Competition Act represents a separate but aligned push — both senators seem willing to challenge entrenched financial incumbents on multiple fronts.
The bill's path forward remains uncertain. But the addition of two Republican senators with crypto credentials signals that payment network competition isn't purely a left-right issue anymore.
Frequently asked questions
What does the Credit Card Competition Act require?
The bill requires banks with more than $100 billion in assets to enable at least two unaffiliated payment networks on their credit cards, allowing merchants to route payments through competing networks to reduce processing fees.
Why do banks oppose this bill?
The banking industry argues that interchange fees fund credit card rewards programs, and forcing cheaper network routing would reduce revenue available for rewards. Credit unions also warn that smaller institutions depend on interchange margins.
Who supports the Credit Card Competition Act?
Former President Trump, the Merchants Payments Coalition, the National Association of Convenience Stores, and a bipartisan coalition of senators including Durbin, Marshall, Welch, Moreno, and Lummis have backed the legislation.
