The Credit Card Competition Act requires the Federal Reserve to establish new regulations within one year to increase competition in credit card processing networks. Specifically, the law prevents large credit card issuers (those with over $100 billion in assets) and payment networks from forcing credit cards to process on only one network or a limited set of networks, and it prohibits them from blocking merchants' ability to choose which network processes their transactions. The bill also requires the Federal Reserve to create and maintain a public list of payment networks that pose national security risks or are controlled by foreign governments, which would be exempt from the competition requirements. The regulations will take effect 180 days after the Federal Reserve finalizes them, with the Fed reviewing market conditions every three years to ensure the largest networks remain competitive. This legislation aims to lower costs for consumers and merchants by enabling them to use competing payment networks rather than relying on dominant providers.
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