NFIB urges Congress to advance Credit Card Competition Act to aid small businesses

The National Federation of Independent Business (NIFB)  is urging Congress to pass the Credit Card Competition Act, arguing that rising credit card swipe fees are among the most substantial and costly expenses for small businesses nationwide.

The legislation, reintroduced by Sen. Roger Marshall of Kansas and Sen. Dick Durbin of Illinois, is designed to increase competition in the credit card processing market by allowing merchants to choose from multiple payment networks. NFIB says that flexibility could help reduce transaction costs that have become a growing burden for small business owners.

Swipe fees, also known as interchange fees, are charged to merchants every time a customer uses a credit card. According to NFIB, those fees have risen disproportionately in recent years and now rank among the most significant monthly expenses for many small businesses, particularly those operating on thin margins.

NFIB President Brad Close said the bill would force credit card networks to compete for merchants’ business, similar to how small businesses compete for customers.

Under the proposal, large credit card issuers would be required to enable at least two unaffiliated networks for processing transactions. NFIB said 92% of its members support having the right to choose between networks, which could lead to lower fees and improved cash flow.

Supporters argue that reduced processing costs would allow small businesses to reinvest savings into hiring, inventory, technology upgrades, and customer experience improvements. However, the group also acknowledged that businesses would need to evaluate potential tradeoffs, including system compatibility and differences in service levels among networks.

The legislation has gained bipartisan attention as concerns grow over the impact of payment processing fees on small business sustainability. President Donald Trump has also criticized swipe fees, previously calling them “out of control,” adding political momentum to the push for reform.

If enacted, the Credit Card Competition Act could reshape the credit card industry and alter how banks and networks operate. NFIB said small business owners should stay informed and be prepared to assess new payment options if the bill advances.