What Merchants Need to Know About the Credit Card Competition Act of 2023
If you’re a business owner, you’ve likely noticed rising credit card processing fees eating into your profits. You’re not imagining things—those costs have been steadily increasing for years. But there’s a new piece of legislation that could change the game: the Credit Card Competition Act of 2023.
So, what does it mean for you—and will it actually help lower your costs?
Let’s break it down in simple terms.
What Is the Credit Card Competition Act of 2023?
This proposed law aims to inject more competition into the credit card processing market. Right now, two major players—Visa and Mastercard—dominate over 80% of credit card transactions in the U.S. They set the interchange fees that merchants must pay every time a customer pays with a credit card.
These merchant fees typically range from 2% to 3.5% per transaction, and for some small businesses, they’re the second or third largest expense after payroll and rent.
The Credit Card Competition Act proposes that:
- Big banks (those with over $100 billion in assets) must offer at least two unaffiliated card processing networks on their credit cards.
- One of those networks must be an alternative to Visa or Mastercard—such as Discover, American Express, or independent networks.
- Merchants (not the card issuers) would then be allowed to choose which network to route the transaction through, ideally selecting the one with the lowest fees.
There are 3 reasons Why This Matters to Merchants
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- If passed, this legislation introduces competition to Visa/MasterCard that could significantly lower the cost of accepting credit cards, especially for small and mid-sized businesses. Here’s how:
- Merchants could save money on every transaction by choosing lower-cost networks. Merchants would gain leverage to avoid some of the highest interchange fees in the industry.
- More Competition Means More Innovation. Visa and Mastercard have little incentive to innovate or reduce fees when they dominate the market. Opening the door to competition could drive improvements in security, technology, and pricing. More Control and Transparency
Right now, merchants have no say in how transactions are routed. This bill would finally give merchants the ability to choose a more cost-effective path, which could put thousands of dollars back into their business annually.
Big Banks and Card Companies Are Pushing Back
Visa, Mastercard, and major banks are lobbying hard against this bill. They argue that more routing options could compromise security and rewards programs. But most of these claims don’t hold up under scrutiny.
For example:
- Debit cards already operate under a dual-routing system, and fraud levels haven’t skyrocketed.
- Rewards programs are often funded by banks—not interchange fees—and could be preserved through competition.
In reality, the pushback is about protecting profits, not protecting merchants or consumers.
Will It Pass? And When?
As of mid-2025, the bill has bipartisan support in both the House and Senate, but it’s still making its way through committees. Large lobbying groups are trying to stall or kill it, so merchant voices matter more than ever.
If you believe you should have the freedom to choose lower-cost options, now is the time to speak up—contact your representatives and share how swipe fees affect your business.
So What You Can Do Now?
Whether or not the bill passes this year, you don’t have to wait to lower your processing costs.
At Electronic Money Company, we help merchants like you eliminate or reduce credit card processing fees—legally and ethically—through:
- Dual pricing (cash discounting)
- Transparent pass-through pricing
- No long-term contracts
Let’s have a conversation about how you can save right now—and be ready for whatever this legislation brings next.
Call us at 505-296-2847 for a free savings analysis and learn how we can help you keep more of your hard-earned revenue either by reducing fees or eliminating them completely with dual pricing or cash discounting.
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