Merchants Coalition Launches Assault on Credit Card Swipe Fees: $187.2B Annual Toll Faces Congressional Challenge

Category: Market News

January 26, 2026 - In a coordinated legislative push that has the potential to fundamentally reshape the credit card payments industry, the Merchants Payments Coalition and nearly 350 merchant trade associations have urged the Senate Agriculture Committee to include the Credit Card Competition Act (CCCA) as part of cryptocurrency marketplace structure legislation [1][2]. The move comes just two weeks after President Trump endorsed the CCCA as necessary to "stop the out of control Swipe Fee ripoff," and the Senate Agriculture Committee is scheduled to vote on crypto marketplace legislation on Tuesday, January 27, 2026 [1][2].

The stakes are enormous. Credit and debit card swipe fees have risen 70% since the pandemic and reached a record $187.2 billion in 2024 [2]. These fees are not just a line item on merchant balance sheets; they are the single largest operating cost for most merchants after labor. For small retailers with narrow profit margins, swipe fees are an existential threat. For consumers, these fees drive up prices by nearly $1,200 per year for the average family [2]. The CCCA is designed to introduce competition into the payment card network market, which is currently dominated by Visa and Mastercard, which control 80% of the market [2].

"We call on you to choose Main Street merchants and American consumers over Wall Street megabanks and global card networks," the Merchants Payments Coalition said in a letter to Senate Agriculture Committee members. "While this legislation would benefit all merchants, it is small retailers who are calling for swipe fee reform more than any other segment of our industry. Small retailers have the narrowest profit margins and fewest resources and are hit hardest by continuing unjustified increases in swipe fees." [2]

The CCCA is elegantly simple in its approach. It would require banks with at least $100 billion in assets to enable cards they issue to be processed over at least two unaffiliated networks—Visa or Mastercard plus a competitor like NYCE, Star, or Shazam [2]. This would allow merchants to choose which network to use for each transaction, introducing competition over fees, security, and service. The expected result is savings of $17 billion per year for merchants and consumers [2].

What makes this legislative push particularly significant is the coalition behind it. The letter was signed by nearly 350 merchant trade associations representing interests across all 50 states and making up a broad cross-section of Main Street, including neighborhood retailers, family-owned stores, independent shops, and large national retailers [2]. Additionally, the Coalition of Large Tribes, which represents more than 50 of the nation's largest Native American tribes, has sent a letter to Congress expressing "strong support for the inclusion of the Credit Card Competition Act in any moving vehicle at the soonest opportunity" [2].

The political dynamics surrounding the CCCA are also noteworthy. The bill is being offered as an amendment to crypto marketplace legislation by Senators Roger Marshall (R-Kan.), Richard Durbin (D-Ill.), and Peter Welch (D-Vt.). This bipartisan support suggests that credit card fee reform has transcended partisan politics and is now seen as a mainstream issue [2]. Additionally, Trump's recent endorsement of the CCCA gives it significant political momentum heading into the Senate vote.

The Marshall-Durbin-Welch amendment differs slightly from the reintroduced CCCA in that its requirements would be enforced through antitrust remedies rather than Federal Reserve regulation. However, like the bill, the amendment's requirements would apply only to giant financial institutions, and the vast majority of the nation's banks and credit unions would not be affected or subject to any enforcement actions [2]. This is important because it addresses concerns from community banks and credit unions that they would be burdened by compliance requirements.

For traders, quants, and investors, the CCCA has several important implications. First, it could significantly impact the profitability of Visa and Mastercard, which have historically benefited from their near-monopoly control of the payment card network market. Second, it could drive adoption of alternative payment networks and technologies, including cryptocurrency-based payment systems. Third, it could accelerate the shift toward real-time payment systems and alternative payment methods that bypass traditional card networks entirely.

The timing of the CCCA push is also significant. It comes at a moment when cryptocurrency and blockchain-based payment systems are gaining traction as alternatives to traditional payment networks. If the CCCA passes and introduces competition into the credit card market, it could accelerate the adoption of these alternative payment systems by demonstrating to merchants and consumers that there are viable alternatives to Visa and Mastercard.

References

[1] Another CCCA Avenue? and other Digital Transactions News briefs from 1/26/26 [2] Merchants Urge Senate Ag Committee to Approve Credit Card 'Swipe' Fee Amendment to Cryptocurrency Legislation