Credit Card Competition Act will not face a vote, despite threats from Judiciary Committee

20.11.2024 - 17:51 / thepointsguy.com / Donald Trump / Dallas Cowboys

The Credit Card Competition Act will remain stalled into the start of the 119th Congress in January, based on Tuesday's Senate Judiciary Committee hearing in Washington, D.C.

Senate Bill 1838 would require credit card-issuing banks to offer a minimum of two networks for merchants processing electronic credit card transactions, prohibiting Visa and Mastercard from acting as a duopoly as the largest market share of cards. The bill claims forced competition would lower fees charged by merchants for consumers using their credit cards.

Sens. Roger Marshall, R-Kan, and Richard Durbin, D-Ill., introduced the bipartisan legislation in 2022 before reintroducing it with additional support in 2023, including from Vice President-elect J.D. Vance. Despite momentum from high-profile public support, including from President-elect Donald Trump, the bill has largely remained stalled for most of 2023 and 2024 thus far.

The lack of movement beyond its introduction did not stop the Senate Judiciary Committee from holding its final hearing on the bill this year. During the hearing, members largely urged Visa and Mastercard to modify their practices prior to congressional action.

Sen. Thom Tillis, R-N.C., reiterated his belief that the bill would not pass in this Congress. He suggested that the bill would actually "create more problems." However, he urged the two credit card operators to act on their own before congressional intervention.

"The solution coming from Congress will not be good for anyone," he said on Tuesday.

Tillis had support from Sen. Josh Hawley, R-Mo., who has garnered a reputation for being among the most outspoken members of Congress, despite being a junior senator.

"This is not a sustainable solution," he said. "I am here to tell you this will not stand."

Hawley was the only member who offered an alternative to the bill. He piggybacked on previous proposals, including those by both himself and Trump, to require credit card companies to cap interest rates to lower the $1.14 trillion debt among American credit card users. Reporting on those efforts, which have also been proposed by Democrats, suggests that the credit card industry would similarly oppose that legislation in the way it has with the Credit Card Competition Act.

If the Credit Card Competition Act were currently up for a vote, Louisiana Republican Sen. John Kennedy said he "didn't know how he would vote," but that Congress would act in some form or fashion ... eventually.

Kennedy directly addressed Visa and Mastercard representatives at the hearing and said there were two possible outcomes.

"When we are done with you, you could end up looking like either the post office or the Dallas Cowboys," he said. His office did not respond to a request