NAW Urges Passage of Newly Reintroduced Bill to Curb Credit Card Swipe Fees

The National Association of Wholesaler-Distributors (NAW) is supporting a bill that aims to lower “swipe fees” on credit card purchases, potentially reducing operating costs for distributors and other merchants.

Sens. Dick Durbin (D-IL) and Roger Marshall (R-KS) reintroduced the Credit Card Competition Act on Jan. 13. The bill would require large banks with more than $100 billion in assets to enable at least two unaffiliated card networks, including one outside of Visa and Mastercard, to be used when payments are sent between the merchant and card issuer at the time of sale. Payment companies charge interchange fees, commonly known as “swipe fees,” each time purchase information is sent over their networks.

The bill is designed to give banks more options on which payment networks to use, with the idea being that more competition will lead to lower swipe fees. Currently, the two largest payment networks, Visa and Mastercard, control 85% of all transactions.

A previous version of the bill was co-sponsored by then-senator and now Vice President JD Vance. President Donald Trump also weighed in on the revived bill on his Truth Social platform, stating that everyone should support the legislation “in order to stop the out-of-control swipe fee ripoff.”

In a statement, NAW applauded the president’s call for Congress to pass the bill. “Swipe fees have continued to surge over the last decade and for wholesaler-distributors operating on tight margins, these fees now rank among the highest operating costs,” NAW said. “With just a handful of large companies controlling roughly 80% of the market, meaningful market-driven reform is unlikely without congressional action. NAW echoes the president’s request that Congress advance the CCCA to restore competition, lower costs across the supply chain, and deliver relief for our industry and the customers we serve.”