Will a ‘blue wave’ push the CCCA?

The Credit Card Competition Act (CCCA) is facing a major crossroads following the recent election. This bill is the biggest threat to the current credit card landscape in decades. It aims to force banks to offer at least two different networks for processing credit card transactions. For retailers, this would ideally mean lower interchange fees and more competition against giants like Visa and Mastercard. However, the bill's future is now murky because its two biggest champions are leaving the stage. Senator Roger Marshall was voted out, and Senator Dick Durbin is retiring. For your business, this means the 'swipe fee' relief you might have been banking on is no longer a sure thing. If the bill dies, you can expect credit card processing costs to remain high or continue to climb. On the flip side, the rewards programs that many of your customers use to fund large purchases would stay intact. The banking lobby has argued that the CCCA would kill credit card rewards points. If the bill fails to gain new sponsors in the next Congress, the status quo for payment processing will likely hold for the next several years. Retailers should keep a close eye on who takes over the leadership roles on the Senate Judiciary Committee to see if this remains a priority.

Source: Payments Dive

← Return to the library· Submit a correction