WASHINGTON — A growing coalition of retail and small business advocates is applauding a new effort in the U.S. Senate to attach the Credit Card Competition Act (CCCA) to pending cryptocurrency legislation. They call it a potential game-changer in the fight against soaring credit card “swipe” fees that have burdened both retailers and consumers for years.
The Merchants Payments Coalition (MPC) and the National Retail Federation (NRF) both issued statements welcoming the introduction of an amendment that would fold the CCCA into the GENIUS Act, a bill establishing regulatory rules for stablecoins. The move, led by Senators Roger Marshall (R-Kan.) and Richard Durbin (D-Ill.), could pave the way for the long-anticipated reform of the credit card processing market, where Visa and Mastercard currently dominate with over 80% combined market share.
“It is time for Congress to deal with the hidden credit card fees driving up the prices of nearly everything we buy,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said. “Credit card companies are now even putting swipe fees on top of tariffs and pushing up prices even more. Congress needs to pass the Credit Card Competition Act to give Main Street and their customers a fighting chance against out-of-control fees.”
Swipe fees, typically 2% to 4% of a transaction, are the second-highest operating cost for many merchants, after labor. They reached a record $187.2 billion in 2024, increasing 70% since the start of the pandemic. Retailers say these fees are ultimately passed on to consumers, costing the average U.S. household an estimated $1,200 a year.
NRF Chief Administrative Officer and General Counsel Stephanie Martz said the proposal offers an important opportunity for Congress to address inflation. “With prices for many goods still high, bringing rising swipe fees under control would help offset those costs and provide important relief for consumers and small businesses alike,” she said. “Swipe fees are constantly rising, and card networks face nothing to stop them. The Credit Card Competition Act has growing bipartisan support and would bring fairness to our nation’s broken credit card market. Stablecoin legislation complements efforts to bring competition to swipe fees and adding the CCCA is a perfect match.”
Under the CCCA, banks with assets of $100 billion or more would be required to enable credit cards to be processed over at least two unaffiliated networks — one being Visa or Mastercard, and the other a competing network such as NYCE, Star, or Shazam. Merchants would then be free to choose the network, fostering competition that supporters say could save retailers and consumers up to $17 billion annually.
Support for the measure has been growing. Nearly 2,000 companies, 300 trade associations, and a broad array of consumer and pro-competition groups back the bill. On Capitol Hill, support spans party lines, with key voices like Vice President JD Vance, Senators Josh Hawley (R-Mo.), Peter Welch (D-Vt.), and Lindsey Graham (R-S.C.) criticizing current credit card fee structures as monopolistic and harmful to small businesses.
Importantly, the bill would not affect credit card rewards or apply to community banks and most credit unions, concerns often raised by opponents. Rewards programs are set by card-issuing banks, not the processing networks, and would remain intact under the legislation.
The push to pair the CCCA with stablecoin legislation reflects a strategic legislative tactic, as the Senate prepares to take up digital asset regulation. Retailers say the combination is appropriate, given that both bills aim to enhance transparency and competition in the financial sector.
With the CCCA now potentially headed for a Senate floor vote, retailers see a rare opportunity to reshape the payments landscape in favor of fairness and competition.
