Credit Card Competition Act of 2026 | ChamberLight

IN COMMITTEE· 119TH CONGRESS

Senate BillS 3623Finance and Financial Sector

Credit Card Competition Act of 2026

INTRO JAN 13· LAST ACTION JAN 13

READING

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Introduced

In Committee

Reported

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Passed House

Conference

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Became Law

WHAT THE BILL DOES

AI-written

This bill matters because it seeks to increase competition in the credit card processing industry, which is currently dominated by a few large players. If it becomes law, it could lead to lower costs for businesses when customers pay with credit cards. These savings might then be passed on to consumers through lower prices on goods and services, or they might help businesses improve their bottom line.

However, it could also affect popular credit card rewards programs, as these are often funded by the fees that banks collect from merchants. If those fees decrease, banks might reduce the rewards offered to cardholders. The bill also has a national security component, aiming to prevent potentially risky foreign-owned networks from processing U.S. credit card transactions. If it doesn't become law, the current system of credit card transaction processing, with its existing fee structures and network dominance, would largely remain unchanged.

KEY PROVISIONS

5AI-extracted

PROVISION 01

Requires large credit card issuers to ensure that credit cards can be processed on at least two unaffiliated payment card networks.

This aims to increase competition beyond the two largest networks, potentially lowering transaction costs.

PROVISION 02

Prohibits credit card issuers and networks from restricting a merchant's ability to choose which network processes an electronic credit transaction.

This gives merchants more control over their processing costs and encourages networks to compete for their business.

PROVISION 03

Exempts credit cards issued under a 3-party payment system model (like American Express or Discover) from these new regulations.

This means the rules for competition would not apply to companies where the card issuer and network are the same or closely affiliated.

PROVISION 04

Mandates the Federal Reserve, in consultation with the Treasury, to create a public list of payment card networks posing national security risks or those owned by foreign governments.

This provision aims to protect national security by preventing sensitive transaction data from being processed by potentially hostile entities.

PROVISION 05

Applies these new competition rules only to card issuers that, along with their affiliates, have assets exceeding $100,000,000,000.

This targets the largest financial institutions and payment processors, avoiding imposing new regulations on smaller banks and credit unions.

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ACTION TIMELINE

2 EVENTS

JAN 13

Introduced in Senate

INTROREFERRAL

JAN 13

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

INTROREFERRAL

BILL INFO

TypeSenate Bill

NumberS 3623

Congress119th

StatusIn Committee

IntroducedJan 13, 2026

Last actionJan 13, 2026

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IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED JAN 13, 2026

Senate BillS 3623Finance and Financial Sector

Credit Card Competition Act of 2026

INTRODUCED JAN 13, 2026· LAST ACTION JAN 13, 2026

PASSAGE CHANCES

—%

READING

7 min

COSPONSORS

COMPLEXITY

Moderate

Call my reps Congress.gov

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed Senate

Passed House

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

Requires large credit card issuers to ensure that credit cards can be processed on at least two unaffiliated payment card networks.

This aims to increase competition beyond the two largest networks, potentially lowering transaction costs.

high

Prohibits credit card issuers and networks from restricting a merchant's ability to choose which network processes an electronic credit transaction.

This gives merchants more control over their processing costs and encourages networks to compete for their business.

med

Exempts credit cards issued under a 3-party payment system model (like American Express or Discover) from these new regulations.

This means the rules for competition would not apply to companies where the card issuer and network are the same or closely affiliated.

high

Mandates the Federal Reserve, in consultation with the Treasury, to create a public list of payment card networks posing national security risks or those owned by foreign governments.

This provision aims to protect national security by preventing sensitive transaction data from being processed by potentially hostile entities.

med

Applies these new competition rules only to card issuers that, along with their affiliates, have assets exceeding $100,000,000,000.

This targets the largest financial institutions and payment processors, avoiding imposing new regulations on smaller banks and credit unions.

DEADLINES & DATES

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Not later than 1 year after the date of enactment.

Federal Reserve to prescribe regulations providing for network competition and prohibiting exclusive networks/routing restrictions.

Not later than 1 year after the date of enactment.

Federal Reserve, in consultation with the Secretary of the Treasury, to establish a public list of payment card networks posing national security risks.

Not later than 3 years after the date on which regulations take effect, and not less frequently than once every 3 years thereafter.

Federal Reserve to determine whether the two largest market share networks have changed.

Not less frequently than once every 2 years after the date on which the initial list is established.

Federal Reserve, in consultation with the Secretary of the Treasury, to update the list of national security risk payment card networks.

GLOSSARY

AI-written

Electronic Fund Transfer Act: A federal law that protects consumers when they use electronic methods to transfer money, such as through ATMs, debit cards, and automatic bill payments. This bill would amend that act.
Board of Governors of the Federal Reserve System (The Board): The governing body of the Federal Reserve System, responsible for overseeing the nation's monetary policy and banking system. This bill requires them to create new regulations.
Covered card issuer: A credit card issuer (typically a bank) that, along with its affiliated companies, has total assets greater than $100 billion.
Payment card network: The system or infrastructure that processes credit card transactions, connecting the merchant's bank to the customer's bank (e.g., Visa, Mastercard, Pulse, NYCE).
Electronic credit transaction: Any transaction where a person uses a credit card, including both in-person and online purchases where the physical card isn't presented.
3-party payment system model: A credit card system where the company that issues the card to the consumer is also the company that operates the payment network (e.g., American Express, Discover).

ACTION TIMELINE

2 EVENTS

JAN 13

Introduced in Senate

INTROREFERRAL

JAN 13

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

INTROREFERRAL

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Banking, Housing, and Urban Affairs CommitteeReferred

Jan 13, 2026

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Credit Card Competition Act of 2026

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

SPONSORSHIP

ACTION TIMELINE

BILL INFO

READER REACTIONS

Discussion

Credit Card Competition Act of 2026

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

DEADLINES & DATES

GLOSSARY

ACTION TIMELINE

SPONSORS

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