This bill requires the Federal Reserve to create regulations promoting competition among payment networks for credit card transactions. Specifically, it prevents large credit card issuers (those with over $100 billion in assets) from forcing their cards to be processed through only one payment network or a limited set of networks—with limited exceptions for networks owned by the issuer or identified as national security risks. The bill also prohibits these issuers and networks from blocking merchants' ability to route transactions through alternative networks or from penalizing merchants who choose to use different networks for processing. The Federal Reserve must issue final regulations within one year of the bill's enactment, with those rules taking effect 180 days later, and must review the largest payment networks every three years to adjust requirements if market conditions change. The bill aims to lower credit card processing costs for merchants and ultimately consumers by increasing competition among networks like Visa and Mastercard.
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