US Card Industry Spends $200m to Block Swipe Fee Bill
A banking coalition has deployed $200 million to fight a bipartisan bill threatening Visa and Mastercard’s lucrative routing fees, a legislative battle with major implications for payment network margins and merchant pricing.
The Electronic Payments Coalition, representing Visa, Mastercard and major US banks, has spent roughly $200 million since 2023 lobbying against the Credit Card Competition Act. Championed by Senators Dick Durbin and Roger Marshall, the bill would force large banks to offer alternative payment networks, breaking a duopoly where routing fees have crept up from 2.02% in 2010 to 2.36% in 2026.
The legislation targets the 2% to 3% swipe fees that networks charge merchants, which totaled $198.25 billion in 2025. Merchant consultancy CMSPI estimates the act would save retailers over $17 billion annually, drawing support from major merchants like Amazon, Walmart and Target. Airline worker unions oppose the bill, fearing lost revenue from co-branded card programs.
For markets, the central tension is whether merchant savings would flow to consumer prices or simply bolster corporate margins. The Congressional Research Service concluded it is "indeterminate" whether retailers pass interchange savings to shoppers. Economist Robert Shapiro backtracked on his earlier support for similar debit card regulations, writing in 2025 that "those consumer benefits never materialized."
Banks argue reduced swipe fee revenue and higher administrative costs would force cuts to credit card rewards, a $47.5 billion expense in 2024 according to the Consumer Financial Protection Bureau. Proponents cite CMSPI estimates predicting a reduction of less than $1 per $1,000 spent. Experts note banks might instead shift perks toward services like airport lounge access rather than cash back.
Public records show $165 million of the industry spend directly targeted the legislation. The American Bankers Association, Capital One, Wells Fargo and Visa have also contributed $15.7 million to political campaigns since 2023, funneling more than $5.5 million to key banking committees. Despite this pressure, President Donald Trump urged lawmakers to back the act to "stop the out of control Swipe Fee ripoff."
