S.4674/H.R.8874, the Credit Card Competition Act of 2022, was introduced last year and we are pushing for it to be reintroduced in 2023.

This bill was introduced by Representatives Peter Welch (D-VT) and Lance Gooden (R-TX) to ease the cost of credit card processing especially on small businesses. The bill would allow businesses greater flexibility and more choice regarding which network they use to process credit cards. Currently, credit card companies, such as Mastercard and Visa, can restrict use to their own networks, driving up costs on businesses.

“Credit card companies and mega banks keep finding new ways to squeeze our small retailers in Vermont,” said Rep. Welch. “In a well-functioning market there is competition and choice. That does not exist in our current credit card network market. This bipartisan bill will correct that and bring much needed competition to the Visa-Mastercard duopoly. This long-overdue bill will help our small businesses thrive and lower household costs for families at a time when they really need it.”

“For too long major credit card companies and the nation’s top financial institutions have collaborated to sideline community banks and local retailers in Texas,” said Rep. Gooden. “Our free-market economy cannot exist without healthy competition, and I am proud to introduce legislation to fulfill my pledge to protect small businesses and ensure these companies can no longer use their monopolistic power to crush their competition.”

ABMA supports this legislation because it would force competition among credit card processors thereby reducing costs for our members.