A Senate bill targeting credit card “swipe fees” will not be included in the annual defense policy legislation. However, sponsors of the Credit Card Competition Act have reached a deal with leadership to bring it to the floor for a vote by the end of the year. The bill, reintroduced by Sen. Roger Marshall and Sen. Dick Durbin, would require financial institutions with assets over $100 billion to provide at least two network options for processing credit card transactions, with at least one alternative to Visa or Mastercard. The National Retail Federation (NRF) supports the bill, citing swipe fees as a major operating cost for retailers. The current average fee is around 2 percent, costing retailers over $160 billion annually. Banks argue that swipe fees are necessary to fund credit card rewards programs. The bill sponsors believe that increased competition will lead to lower fees, without implementing price controls. The bill does not currently have a vote scheduled, but proponents are confident it will pass. However, opponents, including Visa, Mastercard, and major banks, argue that the bill will benefit big-box retailers at the expense of consumers and community financial institutions. The impact on credit card rewards programs remains uncertain, with some analysis suggesting a minimal effect. This is not the first attempt to regulate card processing fees, as the Durbin Amendment in 2010 similarly capped fees for debit cards.
Credit Card Points: A Pending Bill Could Alter Their Value
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