Trump doubles down on Credit Card Competition Act as merchants paid $198 billion in swipe fees last year

Trump doubles down on Credit Card Competition Act as merchants paid $198 billion in swipe fees last year

Joseph Zeballos-Roig

Thu, August 6, 2026 at 1:30 PM GMT+3 4 min read

President Donald Trump re-emphasized his support of bipartisan credit card legislation, which supporters say encourages more competition in the payment sector.

Trump touted his backing of the bill in a social media post endorsing Republican Sen. Roger Marshall of Kansas in the state's GOP Senate primary — and presented it as a reason for Republican voters to support Marshall.

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"Roger is working tirelessly to pass the Credit Card Competition Act, in order to stop the out of control Swipe Fee ripoff!" the president said in a Truth Social post on Monday.

Trump first issued an endorsement of the bill in January, as he was attempting to cobble together a domestic agenda around affordability and bringing down the cost of living. The legislation would obligate banks with at least $100 billion in assets to allow credit card fee processing on at least two networks.

"Everyone should support great Republican Senator Roger Marshall's Credit Card Competition Act, in order to stop the out of control Swipe Fee ripoff," Trump said at the time in a social media post.

How credit card fee payments work

Currently, the majority of credit-card issuers — namely, large US banks — link up with either the Visa or Mastercard networks. Once a consumer uses a credit card for payment, the merchant must pay the associated fees to the bank on an affiliated network.

Supporters of the legislation argue that increasing competition between payment processors beyond Visa and Mastercard could slash their fees — and translate into lower costs for consumers.

Both credit card issuing banks and payment networks have turned major profits under the current payment structure. Last year, merchants paid $198.25 billion in credit and debit swipe fees, according to the Nilson Report, a trade publication.

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The credit card bill's rocky path from here

The MPC — a trade group, representing retailers, supermarkets and online merchants — welcomed Trump's comments, saying the legislation would help "restore affordability" in the US economy.

"This is the second time President Trump has called for credit card swipe fee reform, and his continuing commitment shows that concern over these fees has reached the highest level," said MPC Executive Committee member Doug Kantor in a statement. "With President Trump and members of Congress from across the political spectrum seeking passage, it's time to turn this legislation into law."

In addition to Marshall, the legislation only has two Senate co-sponsors so far: Sens. Dick Durbin of Illinois and Peter Welch of Vermont. Vice President JD Vance once signed onto the legislation while serving as Ohio senator, but has stayed mum on the issue since. It was first introduced in 2022.

The Credit Card Competition Act set off a fierce fight, with the retailers paying the fees on one side and the credit card networks and banks that collect on the other. Critics of the legislation argue it will weaken anti-fraud measures and erode popular credit card rewards programs.

The Electronic Payments Coalition, an industry group representing card-issuing banks and payment networks, has spent $22 million to oppose the legislation, according to lobbying filings reviewed by progressive group Demand Progress.

Republican support in Congress hasn't materialized for the bill, so it's unlikely to pass anytime soon. The GOP-controlled House has already adjourned for their summer recess, while the Republican-held Senate is sorting through a raft of competing legislative priorities before skipping town by the end of the week.

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This article originally appeared on Moneywise.com under the title: Trump doubles down on Credit Card Competition Act as merchants paid $198 billion in swipe fees last year

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