Congress Considers Bill to Lower Credit Card Swipe Fees

Proposed legislation aims to increase competition and reduce costs for businesses and consumers.

Published on Feb. 19, 2026

Got story updates? Submit your updates here. ›

A federal bill called the Credit Card Competition Act is seeking to lower credit card swipe fees, which experts say cost the average American family about $1,200 per year. The bill would require large credit card-issuing banks to enable at least one additional, competing payment network on their cards, giving merchants more options for processing transactions. Supporters say this would increase competition and benefit both businesses and consumers, while opponents argue it could have unintended consequences like the elimination of consumer rewards programs.

Why it matters

Credit card swipe fees are a significant cost for businesses, which often pass those expenses on to consumers through higher prices. Lowering these fees could provide relief for both merchants and shoppers, potentially boosting the economy. However, the proposed legislation faces opposition from the banking industry, which argues it could lead to the loss of popular consumer rewards programs.

The details

Every time a consumer uses a credit card, the merchant pays a fee, often around 3% of the transaction, to the payment network (such as Visa or Mastercard) to process the payment. These swipe fees are a major expense for businesses, and they are frequently passed on to customers through higher prices. The Credit Card Competition Act aims to increase competition in the credit card processing market by requiring large banks to enable at least one additional payment network on their cards, giving merchants more options and potentially driving down fees.

  • The Credit Card Competition Act has been introduced in Congress in the past but recently gained renewed attention and was reintroduced after receiving the president's endorsement.
  • The debate on the proposed legislation continues on Capitol Hill as lawmakers weigh the potential impact on businesses, banks, and consumers.

The players

Credit Card Competition Act

A proposed federal bill that aims to lower credit card swipe fees by requiring large credit card-issuing banks to enable at least one additional, competing payment network on their cards.

Doug Kantor

A representative of the National Association of Convenience Stores, which is part of the Merchants Payments Coalition and supports the Credit Card Competition Act.

American Bankers Association

An organization that has sent a letter to Congress raising concerns about the Credit Card Competition Act, arguing that it could eliminate rewards programs that many consumers rely on and that there are no guarantees that merchants would pass savings on to customers.

Got photos? Submit your photos here. ›

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This proposed legislation highlights the ongoing debate around credit card swipe fees and the potential trade-offs between supporting businesses, preserving consumer benefits, and maintaining a competitive financial services landscape.