Pass the Credit Card Competition Act

Affordability matters to every American family 

Every family is feeling the pressure of higher prices. But there's a hidden cost driving up the price of everyday purchases that most people don’t know about: credit card swipe fees. Last year, banks and payment networks collected a record $198.25 billion in swipe fees, adding more than $1,200 a year to the average family's costs. 

What is the Credit Card Competition Act? 

• The Credit Card Competition Act would bring more competition to the credit card market, helping lower costs for retailers and the families they serve.  

• Every time a card is swiped, banks profit off small businesses and consumers. Visa and Mastercard control 80% of the current market, setting the swipe fees charged by all banks that issue their cards, along with the terms for usage — forcing merchants and ultimately consumers to foot the bill. 

• Businesses have no choice but to pay non-negotiable fees and increase prices consumers pay to cover high swipe fees. The card industry is working to raise credit card swipe fees even higher, which will only make it more challenging for small businesses to expand, hire new employees and lower prices at a time of high inflation. It’s time for Congress to act. 

How do hidden swipe fees increase prices? 

• Retailers are forced to incorporate high swipe fees into prices. 

  The average American family pays over $1,200 in higher prices annually because of the rising cost of swipe fees, regardless of whether they even use a credit card. 

• Banks and payment networks are quietly increasing hidden swipe fees on every purchase you make.  
  Merchants paid $198.25 billion in swipe fees in 2025, a new record high. This forces merchants to raise prices and customers to pay more. That is an 80% increase since the pandemic. 

• Credit card swipe fees are one of retailers’ highest operating costs. 
  Swipe fees are too high to absorb, driving up prices and reducing merchants’ ability to invest in their businesses. 

A fair solution 

The bipartisan Credit Card Competition Act would infuse competition into the marketplace by simply requiring there be at least two competing processing networks enabled on each credit card.

These reforms have the potential to save American businesses and consumers an estimated $15 billion per year.