America's Credit Unions warned on Tuesday that the Credit Card Competition Act would upend a payments system built to absorb chargeback losses, hours after President Donald Trump again praised the bill at a Kansas rally for Sen. Roger Marshall, one of its lead sponsors. For cardholders, the fight is not abstract: it is about who pays when a skimmer hits a gas pump and whether cash-back pools shrink if interchange revenue falls.
What the bill would change
The Credit Card Competition Act, long stalled in Congress, would require large card issuers to let merchants route transactions over at least one network besides Visa or Mastercard. Retail groups say that competition would cut swipe fees that merchants pass through to shelf prices. Bank and credit-union lobbyists counter that previous interchange caps, such as the Durbin Amendment on debit cards, did not reliably lower consumer prices while they did trim rewards programs.
Marshall and merchant coalitions are pressing for a vote in the lame-duck session after the November midterms. Trump’s renewed advocacy gives the bill a White House ally going into negotiations, even as the Electronic Payments Coalition — which includes major banks — circulates fact sheets tying interchange revenue to chargeback rights and zero-liability policies for consumers.
Why credit unions entered the fight
Kathleen Coulombe, chief advocacy officer at America's Credit Unions, said in a written statement that the group “steadfastly opposed” the measure and any effort to “upend the payments system.” Credit unions issue cards on the same networks as big banks but often serve members with thinner margins; they argue a routing mandate would force costly network renegotiations without guaranteeing lower prices at checkout.
The trade group also highlighted work with the Electronic Payments Coalition, which contends the current interchange system funds transaction screening, rewards that keep cards competitive, and small-business acceptance tools. Merchant advocates, including the Merchants Payments Coalition, welcomed Trump’s latest comments and framed swipe fees as a hidden tax on Main Street.
What cardholders should watch
Nothing in the bill would change your statement this week. If Congress moves in December, watch three practical signals: whether issuers pre-announce rewards cuts, whether networks publish new zero-liability disclosures, and whether large retailers publish average price changes in markets where routing choice exists on debit today.
Consumers who carry balances should remember that rewards economics sit on top of interest income; a smaller rewards pool does not automatically mean lower APRs. Travel-card holders with annual fees near $200 on co-branded hotel products have already seen issuers raise prices this fall, independent of the swipe-fee debate, which shows how issuers adjust both sides of the ledger.
How to read the lobbying
Both sides are campaigning for suburban voters worried about grocery bills. Retailers want a concrete win they can advertise before holiday shopping; banks want to protect a revenue line that cross-subsidizes dispute-resolution teams that field millions of disputed charges each year. Neither camp can promise a dollar-for-dollar pass-through to consumers because past interchange reforms produced mixed evidence.
If you rely on credit card protections when a merchant disappears — chargebacks remain far more consumer-friendly than most peer-to-peer apps — the chargeback-language in this week’s credit-union statement is the stake worth tracking. A bill that clears the Senate still needs House agreement and a signature; until then, your network’s zero-liability policy remains in force, and you should still report unfamiliar charges within the window your issuer lists online.
Community bankers also note that credit unions reinvest interchange in shared branching and small-dollar loans that big issuers rarely promote. If swipe revenue falls faster than merchants cut prices, those programs are often the first line items finance committees review. That is why the trade group is pairing its statement with calls to lawmakers’ district offices rather than relying on national advertising alone.