Trump Renews Push for Credit Card Fee Reform

President Donald Trump has renewed his campaign for legislation that would increase competition in credit card payment processing, backing a proposal intended to reduce merchant costs and consumer prices. His October 19, 2026, endorsement in Kansas has intensified a dispute between retailers supporting the Credit Card Competition Act and financial institutions concerned about its effects on credit card rewards, lending and payment services.

The bill, sponsored by Sen. Roger Marshall, a Republican from Kansas, and Sen. Dick Durbin, a Democrat from Illinois, would require banks with at least $100 billion in assets to enable transactions through at least two unaffiliated payment networks. The requirement would include a network other than Visa or Mastercard, while smaller institutions would be exempt from the routing mandate.

According to the Merchants Payments Coalition, Visa and Mastercard collectively control 80% of the market. The coalition estimates that the proposed legislation could save merchants and their customers $17 billion annually and generate 54,000 retail jobs in its first year.

At a Kansas rally supporting Marshall, Trump praised the senator's efforts to reduce payment costs for businesses and consumers.

"Roger is also the number one champion fighting to protect hardworking Americans and small businesses from predatory credit card companies and out-of-control swipe fees," Trump said, according to the Merchants Payments Coalition.

Trump also claimed the legislation would produce substantial household savings, although the projected benefits remain disputed by opponents. The National Association of Convenience Stores said the president and Vice President J.D. Vance had publicly endorsed the measure seven times between them this year.

"The American people deserve relief from sky-high credit card swipe fees now. Congress should follow the lead of the President and Vice President and get this done," said Doug Kantor, senior vice president of government relations and general counsel at the National Association of Convenience Stores.

The retail industry argues that limited competition allows payment networks to maintain high processing charges. Merchants pay fees to banks whenever customers use credit cards, and businesses may incorporate those expenses into prices paid by all shoppers, including people who use cash or debit cards.

The Vox analysis published October 19 cited Federal Reserve data showing that households earning less than $25,000 annually placed 17% of their payments on credit cards in 2024. Households earning more than $150,000 used credit cards for 51% of their payments.

A 2026 working paper from the National Bureau of Economic Research estimated that households earning below $150,000 lose an average of $88 annually through the existing system, while households above that income threshold receive an average annual benefit of $390.

Financial institutions and credit union advocates dispute the expectation that lower merchant fees would automatically translate into consumer savings. They warn that reduced interchange revenue could weaken rewards programs, increase other fees and make affordable credit harder to obtain.

"We share the President's commitment to making life more affordable. Real relief must strengthen a military family's financial security. Legislation that could leave that family with fewer affordable credit options, without requiring merchants to pass along savings, fails that test. President Trump should reconsider his support for this bill and help strengthen the institutions that serve those who defend our nation," said Anthony Hernandez, president and CEO of the Defense Credit Union Council.

Jason Stverak, the council's chief advocacy officer, also questioned whether merchants would pass regulatory savings to customers. He cited a 2015 Richmond Fed analysis of a survey involving 420 merchants and the Durbin Amendment's debit-card interchange rules.

"The debit-card experience should give Congress pause. A 2015 Richmond Fed analysis of a 420-merchant survey examining the Durbin Amendment's debit-card interchange regulation estimated that only 1.2% lowered prices after the regulation; 77.2% left prices unchanged and 21.6% raised them. Even among merchants whose debit costs fell, few lowered prices. Debit caps and credit-card routing mandates differ, but that record undercuts promises of automatic consumer savings," Stverak said.

America's Credit Unions has likewise opposed the proposal, arguing that earlier interchange restrictions benefited large retailers without guaranteeing lower consumer prices. The organization maintains that payment providers need sufficient revenue to sustain secure transaction systems and affordable lending.

The legislation's future remains tied to congressional action following the November midterm elections. Retail groups are pressing lawmakers to advance the measure during the December lame-duck session, while financial industry representatives continue to challenge its potential effects on consumers and smaller financial institutions.