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Trump has publicly thrown his support behind the Credit Card Competition Act again, calling current interchange charges a “Swipe Fee ripoff” and putting renewed political pressure on Visa and Mastercard’s fee model. This is raising fresh concerns for the networks and big issuing banks, but the legislation is not yet law and its impact will depend on whether Congress actually passes it.
What Trump just did
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Trump urged lawmakers on social media to back Senator Roger Marshall’s Credit Card Competition Act, saying it would stop the “out of control Swipe Fee ripoff.”
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This follows his recent threat to push a 10% cap on credit card interest rates for one year, signaling a broader campaign against card costs before the midterm elections.
What the Credit Card Competition Act does
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The bill would require large banks (over 100 billion dollars in assets) that issue Visa or Mastercard credit cards to enable at least two unaffiliated networks to process transactions, and at least one must be outside the top two (Visa/Mastercard).
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The Federal Reserve would have one year to write rules, and the goal is to break the Visa‑Mastercard routing “duopoly” so merchants can send transactions over cheaper networks, putting downward pressure on fees.
Why Visa and Mastercard are “in trouble”
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Interchange or “swipe” fees are a core revenue engine for card networks and issuing banks, so any mandate that allows merchants to bypass Visa/Mastercard threatens volumes, pricing power, and margins.
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News of Trump’s endorsement has already weighed on Visa and Mastercard shares as investors price in the risk of lower long‑term fee income and more competition in processing.
Who could benefit and who could lose
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Retailers and small businesses, which have long complained about rising swipe fees, could gain from lower processing costs and more negotiating leverage on routing.
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Big banks and card networks face potential margin compression and reduced control over routing, while some trade groups for banks and credit unions have come out strongly against the bill.
What to watch next
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The Act has bipartisan sponsors (Republicans like Roger Marshall and Democrats such as Dick Durbin and Peter Welch) and already had Senate Judiciary scrutiny of the Visa‑Mastercard “duopoly,” but it has stalled in past sessions.
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The key question is whether Trump’s renewed backing changes the political calculus enough in Congress for the bill to advance, get a floor vote, and reach his desk; until then, Visa and Mastercard face headline and regulatory risk rather than an immediate structural change.
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