Trump and Vance Back Credit Card Competition Act Ahead of Midterms

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Summary · why it matters

President Trump and Vice President JD Vance have renewed their endorsements of the Credit Card Competition Act on the campaign trail heading into the midterm elections, according to a media report. The bill, originally introduced in 2022 with bipartisan support from Senators Dick Durbin and Roger Marshall, would require each card issued by a major bank to support at least two networks, including smaller competitors, aiming to lower the swipe fees that networks and issuers charge merchants. The legislation has the potential to revamp a system that generates billions of dollars in fees for the credit industry, leaving dominant networks Visa and Mastercard with the most to lose. Merchant lobbyists have held talks with White House officials in recent weeks seeking a route to passage, specifically aiming to attach the bill to existing legislation after the midterms but before the current Congress ends, the Wall Street Journal reported, while the payment industry contends the bill would ultimately hurt consumers and is unlikely to pass in any form. In Thursday's regular-hours session, Visa rose 0.8%, Mastercard gained 0.8%, Capital One Financial advanced 1.8%, American Express gained 1.2%, Synchrony Financial jumped 2.5%, and Bread Financial climbed 3.1%.

Impact on assets 6

Digital Finance & Tokenization▼
Mastercard Inc
MA
▼ NegativeRegulationrelevance

Mastercard is a dominant network with the most to lose if the CCCA mandates competing networks.

Visa Inc. Class A
V
▼ NegativeRegulationrelevance

Credit Card Competition Act backed by Trump and Vance would force banks to support at least two networks, threatening Visa's dominant network and swipe-fee revenue.

American Express Company
AXP
▼ NegativeRegulationrelevance

Credit Card Competition Act would force two networks per card, threatening Amex's network/issuer fee model.

Financials▼
Synchrony Financial
SYF
▼ NegativeRegulationrelevance

Synchrony as a card issuer would be affected by mandated network competition and lower swipe fees.