Credit Card Competition Act 2026: what mandatory routing would mean for your rate
Senators Dick Durbin and Roger Marshall reintroduced the Credit Card Competition Act on January 13, 2026 — this time with a first-of-its-kind presidential endorsement — and if it becomes law it would force the largest banks to let merchants route credit-card transactions over a second network that isn't Visa or Mastercard.
Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) reintroduced the Credit Card Competition Act on January 13, 2026, filed in the Senate as S.3623 with a House companion, H.R. 7035 (Congress.gov, S.3623 and H.R. 7035). The bill would require banks with more than $100 billion in assets to enable at least two unaffiliated card networks on their credit cards — including one that isn't Visa or Mastercard — so that merchants can choose which network carries each transaction.
Two things make this reintroduction genuinely new rather than a rerun. First, President Trump endorsed the bill the morning it dropped, posting on Truth Social that "Everyone should support great Republican Senator Roger Marshall's Credit Card Competition Act, in order to stop the out of control Swipe Fee ripoff" (Payments Dive, Jan 13, 2026). It is the first time a sitting president has publicly backed the measure. Second, it arrives with fresh House sponsors — Reps. Lance Gooden (R-TX) and Zoe Lofgren (D-CA) filed the companion the same day (Payments Dive, Jan 13, 2026).
Below is a plain-language, vendor-neutral read on what the bill would — and would not — do to a small merchant's effective rate. If you want to skip the politics, jump to the section on routing and your rate.
What happened on January 13, 2026
- Reintroduced as S.3623. Durbin and Marshall refiled the Credit Card Competition Act in the Senate, with Sen. Peter Welch (D-VT) among the co-sponsors (Sen. Durbin's office, Jan 13, 2026).
- House companion filed. Reps. Gooden (R-TX) and Lofgren (D-CA) introduced H.R. 7035 the same day, keeping the bill bipartisan and bicameral (Payments Dive, Jan 13, 2026).
- First presidential endorsement. President Trump backed the bill via Truth Social the morning of introduction — a new political variable the measure never had in prior Congresses (Payments Dive, Jan 13, 2026).
- Broad merchant support. The sponsors point to backing from nearly 2,000 companies and almost 300 trade associations, led by convenience-store and retail groups (NACS/convenience.org, Jan 14, 2026).
What the bill would actually require
The mechanism is narrower than the headlines suggest, and understanding it is the key to knowing whether it would touch your statement. The Credit Card Competition Act amends the Electronic Fund Transfer Act and directs the Federal Reserve to write rules requiring covered banks to enable routing over more than one network (Congress.gov, S.3623).
Three specifics matter for merchants:
- It's a routing mandate, not a price cap. The bill does not cap interchange or set a maximum swipe fee. It forces large issuers to carry a second network so a competing option exists — the theory being that competition, not a government rate, brings fees down.
- Only the biggest banks are covered. The $100 billion asset threshold means cards issued by community banks and most credit unions fall outside the mandate entirely (Sen. Marshall's office, Jan 13, 2026).
- The choice sits with the merchant side. As with debit today, the merchant (through its processor) would pick which enabled network routes each credit transaction — presumably the cheaper one.
Sponsors frame the stakes in big numbers: Visa and Mastercard control roughly 85% of the credit-card market, the average U.S. family pays close to $1,200 a year in swipe fees, and banks earn an estimated $111.2 billion annually from those fees (Sen. Marshall's office, Jan 13, 2026). Those are the sponsors' figures and the core of their argument; the banking and card industries dispute both the diagnosis and the fix.
What mandatory routing would — and wouldn't — do to your effective rate
Your effective rate is the total you pay in card fees divided by the total you process. The Credit Card Competition Act aims at one input into that number: the network and interchange cost of covered credit cards. Here is the honest version of how it would flow through.
Where savings could come from
Each network sets its own interchange and assessment schedule. If a large bank's card must carry a second network, and that network prices a given transaction lower, a merchant's processor can route to the cheaper option. On debit — where dual-network routing has been law since the 2010 Durbin Amendment — that dynamic has produced real per-transaction competition. Extending the same routing choice to credit is exactly what this bill proposes.
Two honest caveats. Any savings would apply only to cards from covered $100B+ issuers, and only if a competing network actually prices below Visa or Mastercard for your transaction mix. The bill creates the option; it does not guarantee a lower number.
What it wouldn't change
- Your processor's markup. The "plus" in interchange-plus — your provider's fixed margin over cost — is set in your contract, not by Congress. Routing reform touches the pass-through cost beneath it, not the markup on top.
- Rewards-card economics broadly. Premium rewards cards carry high interchange because issuers fund the points. Routing competition may pressure that over time, but the bill doesn't ban or cap rewards interchange.
- Cards from smaller issuers. A card from a bank under $100 billion in assets is untouched by the mandate — for many merchants that's a meaningful slice of volume.
| Factor | Covered by the bill? | Effect on your effective rate |
|---|---|---|
| Interchange on cards from $100B+ banks | Yes (via routing choice) | Potential downward pressure |
| Network assessment fees | Indirectly, via routing | Possible small reduction |
| Your processor's markup ("plus") | No | Unchanged — set by contract |
| Cards from sub-$100B banks / credit unions | No | Unchanged |
| Flat-rate pricing pass-through | No | Often no visible change |
Why interchange-plus merchants would see it first
Here's the part most coverage skips. Whether routing savings ever reach you depends heavily on how your pricing is built. On a transparent interchange-plus program, interchange is passed through at cost and itemized — so if a routed transaction costs less, that lower cost shows up on your statement, line by line. On a flat-rate or bundled plan, your provider keeps the spread between what the network charges and the flat percentage you pay; a cheaper network route can simply widen the provider's margin without changing your bill at all.
That's the practical reason we quote every merchant on interchange-plus rather than a flat rate: reforms like this only benefit you when the underlying cost is visible and passed through. If you're not sure how yours is structured, the fastest way to find out is to run your last statement through our effective rate calculator and see how much of your bill is true interchange versus markup. For a broader view of the fee changes already scheduled this year, see our 2026 interchange changes rundown.
Where it stands, and what to do now
Reintroduction is a beginning, not a finish line. Earlier versions of the Credit Card Competition Act stalled in committee in prior Congresses, and the banking and card-network lobbies are again opposing it — arguing routing mandates would harm rewards programs and card security. The presidential endorsement and a bicameral, bipartisan sponsor list give the 2026 version more momentum than any before it, but no committee vote, floor schedule, or effective date exists as of this writing (late July 2026). Nothing about your rate changes today.
So treat the bill as a reason to get your own house in order, not to wait. The levers you actually control are here now: a transparent pricing model, correct card-present and keyed handling, and — for anyone taking commercial cards — Level 2 and Level 3 data that qualifies business and government transactions at lower interchange automatically. If you invoice other businesses, our guide to B2B credit-card processing covers where those savings are largest.
If you'd rather just know whether you're overpaying, that's what we do. Lifted Payments is the payments ISO and software agency of Lifted Holdings; card processing runs on the Maverick gateway with ACH and eCheck on NMI, and we quote interchange-plus after reviewing one real statement — no application fee. Whatever Congress does with S.3623, an honest rate review tells you where you stand today. See merchant services for the full picture.
Sources
- Sen. Durbin — Durbin, Marshall Reintroduce the Credit Card Competition Act — Primary source; Jan 13, 2026; verified $100B threshold, 85% duopoly, $1,200/family, $111.2B, Welch co-sponsor.
- Sen. Marshall — Reintroduce Credit Card Competition Act Backed by President Trump — Primary source; Jan 13, 2026; verified $1,200/family, $111.2B, 85%, $100B threshold, Trump backing.
- Payments Dive — Credit card competition bill wins Trump support — Jan 13, 2026; verified verbatim Truth Social quote and House companions Gooden and Lofgren.
- NACS / convenience.org — Congress Reintroduces Credit Card Competition Act — Jan 14, 2026; verified almost 2,000 companies and nearly 300 trade associations in support.
- Congress.gov — S.3623, Credit Card Competition Act of 2026 (text) — Official bill text; S.3623 / H.R. 7035; amends the Electronic Fund Transfer Act (EFTA amendment and Fed-rulemaking corroborated by Kilpatrick Townsend analysis, Jan 30, 2026).
Credit Card Competition Act FAQ
What is the Credit Card Competition Act of 2026?
It's a bill (S.3623 in the Senate, H.R. 7035 in the House) reintroduced on January 13, 2026 by Sens. Dick Durbin and Roger Marshall. It would require banks with more than $100 billion in assets to enable at least two unaffiliated card networks on their credit cards — including one that isn't Visa or Mastercard — so merchants can route transactions over a competing network (Congress.gov, S.3623).
Would the Credit Card Competition Act cap my swipe fees?
No. It is a routing mandate, not a price cap. The bill doesn't set a maximum interchange or swipe fee. Instead it forces large issuers to carry a second network, on the theory that competition between networks pushes fees down over time.
Has the Credit Card Competition Act passed?
Not as of late July 2026. It was reintroduced on January 13, 2026 with a presidential endorsement and bipartisan House and Senate sponsors, but earlier versions stalled in prior Congresses and no committee or floor vote has been scheduled. Nothing about your processing rate changes until and unless it becomes law and the Federal Reserve writes the rules.
How would routing competition affect my effective rate?
It targets the interchange and network cost of credit cards issued by banks over $100 billion in assets. If a competing network prices a transaction lower, your processor could route to it. On interchange-plus pricing that saving is passed through and itemized on your statement; on flat-rate pricing the provider may keep the difference. It would not change your processor's contractual markup.
Does this affect cards from credit unions and small banks?
No. The mandate applies only to issuers with more than $100 billion in assets. Cards from community banks and most credit unions fall outside the bill, so transactions on those cards would be unaffected (Sen. Marshall's office, Jan 13, 2026).
See where your rate stands today
Whatever Congress does with S.3623, you can find out right now whether you're overpaying. Send us one recent statement and we'll quote interchange-plus with the markup shown in the open — no application fee, no obligation. Reach us at pay@liftedholdings.com or +1 855-678-5142.