President Donald Trump renewed his support for the Credit Card Competition Act on Monday, putting fresh White House pressure behind a law that would force down the swipe fees merchants pay when customers use credit cards. He also praised Kansas Sen. Roger Marshall for working tirelessly to pass the measure, sharpening a fight that has been stalled in Congress for months.
The timing matters because the White House urged Congress last week to put Main Street over Wall Street by enacting the law, and retailers are now pushing hard for action in December's lame-duck congressional session. The bill has become another test of whether Trump is willing to keep pressing an idea he first backed in January, even as the politics around it remain frozen.
At the center of the dispute is a simple tradeoff. The Credit Card Competition Act is meant to drive down swipe fees, which banks collect when a card is used. Merchants often fold part of those costs into higher prices, which means shoppers who pay with cash or debit end up helping cover the cost of card use. Supporters say that if those fees fall, prices should ease for everyone who buys goods and services, not just for the cardholder at the register.
Banks are warning that the same change could reduce cash rewards and travel points. That is the argument that has long given the bill its political edge, but the consequences are not as clear-cut as the industry suggests. Lower fees do not automatically translate into an equal loss of rewards, and the law could still leave the average American better off if merchants pass fewer costs through to prices. The real friction is that the people paying more today are not always the people collecting points tomorrow.
Wall Street and the White House are now locked in a familiar feud over the measure, while retailers and banks keep lobbying to shape what happens next. If Congress takes up the Credit Card Competition Act in December, lawmakers will be deciding not just whether swipe fees fall, but who ultimately absorbs the difference.
