WASHINGTON — The Credit Card Competition Act faces a leadership gap next year following Republican Sen. Roger Marshall’s election defeat and Democratic Sen. Dick Durbin’s planned retirement, according to an analysis by Payments Dive.
The departures would leave the legislation without its two leading Senate sponsors as a new Congress convenes. Payments Dive said that could alter prospects for the measure, which has struggled to advance since Marshall and Durbin introduced it in 2022.
As the CU Daily has reported, the bill would require banks that issue credit cards to make an alternative network beyond Visa and Mastercard available to process transactions, Payments Dive reported. Supporters argue that greater competition would lower the processing fees merchants pay.
‘Painful,’ But Some Positives
Doug Kantor, general counsel for the National Association of Convenience Stores and a member of the Merchants Payments Coalition’s executive committee, told Payments Dive that losing Marshall’s support was painful. He credited Marshall with broadening backing for the bill, including from President Donald Trump.
Kantor counted nine public calls for passage by Trump or Vice President JD Vance, a former Senate sponsor, although much of that advocacy accompanied efforts to reelect Marshall, Payments Dive reported.
Supporters could seek passage during the final weeks of the current Congress by attaching the measure to spending legislation. Kantor told Payments Dive that its prospects would depend on lawmakers’ willingness to act before the session ends.
One ‘Continuing Advocate’
Sen. Peter Welch (D-VT) is positioned to take a larger role. Payments Dive reported that Durbin’s office pointed to Welch as a continuing advocate and cited Punchbowl News reporting that Durbin had handed leadership of the effort to him.
With Republican Sen. Cynthia Lummis also retiring, Payments Dive identified Sen. Bernie Moreno of Ohio as a remaining Republican Senate sponsor who could help preserve the bill’s bipartisan support.
Opponents expect the campaign to continue. Electronic Payments Coalition Executive Chairman Richard Hunt told members in a Wednesday email that the group would keep emphasizing potential consequences for access to credit, community financial institutions, data security and card rewards, Payments Dive reported.
The analysis said supporters, including the National Restaurant Association, are presenting the legislation as an affordability measure, arguing that higher merchant fees contribute to higher consumer prices.
Potential Shift in Focus
But Payments Dive said an affordability focus could also shift congressional attention toward interest rates paid by cardholders. Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., introduced legislation last year to cap credit card interest rates at 10%.
That proposal also has Trump’s backing and could gain a more favorable reception with additional Democrats in Congress, Payments Dive’s analysis said.
