Senators Moreno and Lummis Support Credit Card Competition Act to Challenge Visa and Mastercard

Senators Bernie Moreno and Cynthia Lummis have endorsed the Credit Card Competition Act, a legislative effort aimed at reducing the dominance of Visa and Mastercard in the credit card processing market. The bill, which was reintroduced in January 2026, requires banks with assets exceeding $100 billion to offer at least two unaffiliated payment networks for their credit cards. This initiative seeks to create a competitive environment that could lower transaction fees for merchants by allowing them to choose from multiple payment networks.

The bipartisan support for the Credit Card Competition Act includes Senators Angus King, Dick Durbin, Roger Marshall, and Peter Welch. Merchant groups, such as the Merchants Payments Coalition and the National Association of Convenience Stores, have expressed strong support for the legislation, viewing it as a necessary step to correct a market that has favored large financial institutions for too long. Former President Trump has also publicly endorsed the bill, adding to its momentum.

While the bill aims to enhance competition, it faces opposition from Visa, Mastercard, and major card-issuing banks, which argue that the proposed changes could undermine rewards programs that are integral to their credit card offerings. Critics, including some credit unions, have raised concerns that the legislation could negatively impact smaller institutions reliant on interchange fees, despite the bill's specific focus on larger banks. This complex landscape highlights the ongoing tensions between lawmakers advocating for financial reform and the banking industry.

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Source: KLEA News