Trump backs card bill, again

President Trump has signaled renewed support for legislation aimed at lowering credit card interchange fees, labeling them a 'ripoff' for small businesses. This move aligns with the Credit Card Competition Act. The bill seeks to break the Visa-Mastercard duopoly by requiring banks to offer at least two different networks for processing credit transactions. For retailers and operators, this could be a major win for your bottom line. Lower interchange fees mean you keep more of every dollar from a sale. Currently, these 'swipe fees' are one of the highest operating costs for merchants, often exceeding the cost of utilities or healthcare. The bill aims to inject competition into the market, which supporters argue will force processing fees down. While the banking industry warns that this could impact credit card rewards programs, the immediate benefit for merchants would be increased margin on every credit transaction. If this legislation gains momentum under the new administration, you should prepare to review your merchant processing agreements to ensure you are capturing these savings rather than letting your processor pocket the difference.

Source: Payments Dive

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