Credit Card Competition Act: Mandating Multiple Processing Networks for Transactions
This Act requires the Federal Reserve Board to establish rules promoting competition in credit card transactions by preventing large card issuers from restricting processing to a single network. The goal is to give merchants the ability to choose among competing networks for routing transactions, potentially lowering transaction fees. While aimed at financial institutions, this competition could ultimately lead to reduced costs for businesses and potentially lower prices for consumers.
Key points
Large card issuers (assets over $100 billion) must enable credit cards to be processed over at least two unaffiliated payment networks.
Merchants gain the right to choose which available payment network processes an electronic credit transaction (routing flexibility).
The Federal Reserve must identify and list payment networks posing national security risks, excluding them from routing options.
Status:
Introduced
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