Trump endorsed bill to enhance competition and choice in the credit card network market, which is currently dominated by the Visa-Mastercard duopoly 

WASHINGTON, D.C. –  U.S. Senator Peter Welch (D-Vt.), a member of the Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights, today joined Senate Judiciary Ranking Member Dick Durbin (D-Ill.) and Senator Roger Marshall (R-Kan.) in reintroducing the bipartisan Credit Card Competition Act (CCCA), which was recently endorsed by President Trump.  

This bipartisan bill will enhance competition in the credit card market, which is currently dominated by the Visa-Mastercard duopoly, and lower costs for consumers. Senator Welch led the bill as a member of the House of Representatives and was an original cosponsor of the legislation when it was introduced in 2023. 

Today, Visa and Mastercard control about 85% of the credit card market and refuse to negotiate fair terms with Main Street merchants. Currently, the average American family pays nearly $1,200 per year in swipe fees, while banks profit $111.2 billion annually from swipe fees. 

“The Visa-Mastercard duopoly puts extreme pressure on businesses in Vermont’s historic downtown shopping districts and up and down Main Streets across America. This duopoly is killing small businesses in America, leaving them no choice but to pay crushing interchange fees or risk going under,” said Senator Welch.  “We need choice, competition, and lower costs—we need the Credit Card Competition Act. I’m proud to team up with Senators Durbin and Marshall on this legislation to foster market competition and lower costs for America’s small businesses and consumers.” 

Building on debit card competition reforms enacted by Congress in 2010, the bill would direct the Federal Reserve to ensure that large credit card-issuing banks offer a choice of at least two networks over which an electronic credit transaction may be processed. Small businesses and organizations in Vermont impacted by high interchange fees, including Homeport, Wilder Wine’s Sipha Lam, and the Vermont Retail and Grocers Association, have voiced support for the CCCA’s provisions to lower swipe fees and cut down costs for business owners. 

“Americans are struggling with everyday purchases like groceries and gas, and credit card swipe fees inflate those already exorbitant prices,” said Senator Durbin. “By bringing real competition to credit card networks, which is currently dominated by the Visa-Mastercard duopoly, we can reduce swipe fees and hold down costs for Main Street merchants and their customers. Let’s pass the Credit Card Competition Act as soon as possible.” 

“The average American family is being ripped off by Big Banks, who profit billions from swipe fees while hardworking Americans pay the price. It’s time to bring real competition to a credit card network market dominated by Visa and Mastercard — and drive down the cost of everyday goods,” said Senator Marshall. “The American Dream doesn’t work when the system is rigged, and this bill helps level the playing field. I’m grateful to have President Trump’s support, and I look forward to working with Senator Durbin to get this across the finish line.” 

There are currently four major U.S. credit card networks: Visa, Mastercard, American Express, and Discover. Visa and Mastercard are known as “four-party” networks; they act as agents for thousands of card-issuing banks and mandate the fees and terms that the banks receive from merchants for each transaction.  Merchants have limited leverage to negotiate fee rates and terms in four-party network systems, because they cannot risk losing access to the consumers served by Visa’s and Mastercard’s member banks.    

The consolidated market power and network structure of the Visa-Mastercard duopoly has enabled the companies to impose fees on U.S. merchants that are among the world’s highest, charging over $100 billion in U.S. merchant credit card fees in 2023.  These fees include interchange or swipe fees which Visa and Mastercard require merchants to pay to issuing banks, as well as network fees that Visa and Mastercard require merchants to pay directly to them. Consumers ultimately pay for these fees in the price of the goods and services they buy. 

Under the Credit Card Competition Act, the Federal Reserve would issue regulations, to ensure that banks in four-party card systems that have assets of over $100 billion cannot restrict the number of networks on which an electronic credit transaction may be processed to less than two unaffiliated networks, at least one of which must be outside of the top two largest networks. This would inject real competition into the credit card market—opening the door for new market entrants such as current debit-only networks, encouraging innovation and enhanced security, creating backup options if a network crashes, and exerting competitive constraints on Visa and Mastercard’s fee rates.  

Learn more about the Credit Card Competition Act. 

Read and download the full text of the bill. 

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