Merchants Rally Behind Swipe Fee Reform Amendment as Senate Ag Committee Eyes Crypto Bill Vote
WASHINGTON — A coalition of merchants is pressing the Senate Agriculture, Nutrition, and Forestry Committee to approve an amendment targeting excessive credit card “swipe” fees, hitching the reform to upcoming cryptocurrency market structure legislation.
The Merchants Payments Coalition, along with dozens of small business advocates, sent a letter to committee members urging support for the amendment led by Senators Roger Marshall (R-Kan.), Richard Durbin (D-Ill.), and Peter Welch (D-Vt.). The measure, akin to the Credit Card Competition Act (CCCA), aims to force large banks to allow credit cards to be processed over competing networks, potentially lowering fees dominated by Visa and Mastercard.[1]
Key Push from Small Retailers
“We call on you to choose Main Street merchants and American consumers over Wall Street megabanks and global card networks,” the organizations stated in their letter. They emphasized that small retailers, with narrow profit margins, suffer most from rising swipe fees, which continue to increase unjustifiably.[1]
The amendment would apply only to banks with at least $100 billion in assets, sparing most community banks and credit unions. It mandates these institutions enable processing on at least two unaffiliated networks, such as Visa or Mastercard plus competitors like NYCE, Star, or Shazam. Visa and Mastercard control 80% of the market and set fees centrally while blocking cheaper alternatives.[1]
Unlike the standalone CCCA, the amendment enforces requirements through antitrust remedies rather than Federal Reserve oversight, but retains the core goal of injecting competition into card routing.[1]
Trump’s Endorsement Fuels Momentum
The push gained significant traction two weeks ago when President Donald Trump endorsed the CCCA, calling it essential to “stop the out of control Swipe Fee ripoff.” The bill was swiftly reintroduced in both chambers following his support.[1]
Trump’s backing poses a “major threat” to banks’ bottom lines, according to policy analysts. It comes amid Visa and Mastercard’s proposed $38 billion settlement in merchant litigation, which could reduce interchange fees through 2031.[2]
Senators Marshall and Durbin previously failed to attach the bill to the National Defense Authorization Act but are now leveraging the crypto bill. Bloomberg Government analysts note increased chances for linkage to must-pass legislation, including spending bills.[2]
Committee Timeline and Crypto Context
Chairman John Boozman (R-Ark.) announced a timeline for the committee’s crypto market structure bill, known as the Digital Commodity Intermediaries Act. A markup session is set for January 29, where the swipe fee amendment could be voted on.[4]
The Agriculture Committee’s draft focuses on Commodity Futures Trading Commission (CFTC) regulation of digital commodities, contrasting with the more expansive Senate Banking Committee’s Digital Asset Market Clarity Act, which involves the SEC and banking regulators.[5]
Both bills aim to provide regulatory clarity for crypto markets, protecting consumers while fostering innovation, as Boozman stated. Harmonizing versions with the House-passed Clarity Act, approved in July 2025, remains a challenge ahead.[5]
Opposition from Financial Institutions
Not everyone supports the amendment. America’s Credit Unions urged a “no” vote, arguing it would disrupt a secure payments system, heighten fraud risks, weaken consumer protections, and limit affordable credit—primarily benefiting large retailers.[3]
“Forcing routing mandates into the payments system increases fraud risk,” said Scott Simpson, President and CEO of America’s Credit Unions. He called the crypto bill attachment a flawed revival of the policy.[3]
Senate Majority Leader John Thune (R-S.D.), from a state with heavy credit card industry presence, expects a floor vote but remains cautious. Other leaders are noncommittal, though analysts see stronger bipartisan support for swipe fee reform than for Trump’s proposed credit card interest rate cap.[2]
Broader Implications for Merchants and Banks
Proponents argue the reform would save merchants billions, easing costs passed to consumers. Critics, including banks, warn of systemic risks in a network reliant on speed and security.
“There is more bipartisan warmth toward the CCCA,” noted Nathan Dean of Bloomberg Intelligence, contrasting it with rate cap proposals where banks might self-adjust temporarily.[2]
As the January 29 markup approaches, the amendment’s fate could reshape payment processing competition, intertwining traditional finance debates with crypto regulation. Merchants hope for a win for Main Street, while opponents brace for potential upheaval.
The committee’s decision will signal Congress’s 2026 priorities on fintech, consumer costs, and industry power dynamics.