WASHINGTON – Today, Rep. Gooden re-introduced the bi-partisan Credit Card Competition Act to address the exploitation of Main Street businesses by Wall Street. "Large credit card firms have consistently demonstrated prioritizing self-interest over our constituents," stated Rep. Gooden. "The Credit Card Competition Act serves to address this imbalance and restore a healthy, competitive free market that operates in the interest of consumers."

Breakdown of the Credit Card Competition Act:

Choosing Main Street Over Wall Street: This legislation targets the monopolistic grasp of Visa and Mastercard, which control 83% of the credit card market. It requires the largest banks, those with over $100 billion in assets, to facilitate a second competitive network on each card, promoting competition and reducing the high swipe fees burdening American families.

Swipe fees average over 2 percent of the transactions that banks and card networks like Visa and Mastercard charge merchants to process credit card transactions. Credit and debit card swipe fees have more than doubled over the past decade. Swipe fees are most merchants’ highest operating cost after labor and drove up consumer prices by about $1,000 a year for the average family in 2022.

Bolstering Card Security by Excluding the Chinese Communist Party from the U.S. Market:  It disallows networks owned, funded, or sponsored by foreign state entities from processing U.S. credit card transactions, explicitly prohibiting China Union Pay.

Enhancing the Security of the U.S. Payments System:  In an era of increased cyber threats, this bill introduces a secondary network to handle transactions should Visa or Mastercard experience a cyberattack. Safeguarding Banks with Assets Under $100 Billion: This legislation exempts small and mid-sized financial institutions, focusing instead on banks with $100 billion or more in assets.

Congressman Gooden was joined by Senators Durbin (D-IL), Marshall (R-KS), who introduced a Senate companion bill today, and Reps Lofgren, (D-CA), Rep. Tiffany (R-WI), Rep. Van Drew (R-NJ) who co-sponsored Rep. Gooden's legislation.

Private Sector Support: “The Credit Card Competition Act is a beacon of hope for main street businesses like restaurants,” said Emily Williams Knight, President & CEO of the Texas Restaurant Association. “Two credit card companies control over 80% of the market, and predictably their fees have more than doubled in the past decade. For the local restaurant, this is a David versus Goliath story they live every day, forcing lower margins and higher prices that multiply inflation for consumers. By empowering restaurants and other main street businesses to choose a secure network to route credit card transactions, the Credit Card Competition Act restores some balance to the scales and stands to save main street businesses and consumers an estimated $11 billion a year.”

“Due to a lack of competition, credit card companies have been able to exponentially increase hidden processing fees over the last decade. These fees are most retailers’ highest business expense after labor and rent. By requiring more than one network option on credit cards, the Credit Card Competition Act would foster competition and transparency in the credit card market so that card networks would have to compete for business on fees and terms – just as we compete for our customers’ business.” - Leslie G. Sarasin, President and CEO, FMI – The Food Industry Association

“NFIB thanks Congressman Gooden for having the courage to stand up for small business. The Credit Card Competition Act will give small businesses real choices for the first time and bring down swipe fees by injecting competition into the marketplace.” - Jeff Brabant Director, Federal Government Relations - NFIB

The Credit Card Competition Act is supported by over 250 associations representing all 50 states, including the National Federation of Independent Business (NFIB), National Association of Convenience Stores, National Retail Federation, National Restaurant Association, National Grocers Association, Texas Food & Fuel Association, Texas Package Stores Association, Texas Restaurant Association, and the Texas Retailers Association, among others. Read the full text here.