The National Retail Federation (NRF) recently renewed its call for Congress to advance the Credit Card Competition Act following its reintroduction in both chambers. The legislation is aimed at increasing competition in the credit card payments market, where most transactions are currently processed through a limited number of networks.
According to NRF, the bill would address concerns from retailers about credit card swipe fees, which are typically set by card networks and are not negotiable by businesses. These fees are applied to nearly every card transaction and can represent a significant cost for retailers of all sizes, particularly small and independent businesses.
Supporters of the legislation argue that requiring more competition among payment networks could help reduce transaction costs and improve transparency in the system. NRF has emphasized that increased competition could benefit not only retailers but also consumers, as lower processing costs may help businesses keep prices more affordable.
The Credit Card Competition Act is sponsored by a bipartisan group of lawmakers, reflecting ongoing interest across party lines in examining the structure and costs of the payments marketplace. Proponents say the bill is intended to create a more balanced environment for businesses while maintaining security and convenience for cardholders.
NRF has encouraged Congress to move forward with the legislation, citing rising swipe fees and their broader impact on the economy.
