Money is getting weird. If you've looked at your grocery receipt lately or tried to book a flight with points, you’ve probably felt the squeeze. Right now, there’s a massive fight happening in Washington D.C. that could change how every single swipe of your plastic works.
It's called the Credit Card Competition Act (CCCA), but most people just call it the Durbin Marshall credit card bill.
Basically, Senators Dick Durbin and Roger Marshall want to break up the "duopoly" of Visa and Mastercard. They just reintroduced the bill in January 2026, and even President Trump jumped in to support it, calling swipe fees a "ripoff."
But like anything involving billions of dollars, there’s a catch. Or five. Let's look at the Durbin Marshall credit card bill pros and cons without the boring corporate jargon.
What is this bill actually trying to do?
Think about when you buy a $4 coffee. The shop doesn't get $4. They pay a "swipe fee" (interchange fee) that usually ends up being around 2% or 3%. Most of that goes to the bank that issued your card, and some goes to the network like Visa or Mastercard.
Currently, if you have a Visa card, the merchant must use the Visa network to process that payment. They have no choice.
The Durbin Marshall bill wants to force big banks (those with over $100 billion in assets) to offer at least two different networks for every transaction. One of those networks cannot be Visa or Mastercard.
The idea? If a shop can choose a cheaper network like NYCE or Star, they save money. If they save money, maybe—just maybe—your coffee gets cheaper.
Durbin Marshall Credit Card Bill Pros: The Bright Side
The people pushing this bill, including groups like the National Retail Federation (NRF) and the National Restaurant Association, argue that the current system is essentially a hidden tax on every American family. Here is why they think this law is a win.
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1. Lower Prices at the Register
This is the big one. Proponents say swipe fees cost the average American family about $1,200 a year in inflated prices. If a local hardware store pays $50,000 a year in fees, they have to raise the price of hammers and nails to cover it. By injecting competition, supporters believe merchants will pass those savings to you.
Honestly, it’s about leverage. Right now, small businesses have zero power to negotiate with Visa. This bill gives them a seat at the table.
2. Helping the "Main Street" Small Business
For a small cafe, swipe fees are often the second-highest cost after labor. That’s insane. Doug Kantor from the Merchants Payments Coalition has pointed out that these fees rise automatically with inflation. When the price of milk goes up, the fee goes up too, even though the "work" of processing the transaction is exactly the same.
3. Better Security through Competition
You’d think the big guys are the most secure, but supporters argue otherwise. Some smaller networks actually have lower fraud rates than the giants. The bill’s backers say that by opening the market, networks will have to compete on who has the best encryption and the fewest hacks.
Durbin Marshall Credit Card Bill Cons: The Scary Parts
If you love your travel points, this is where you might want to sit down. Banks and credit unions are fighting this bill with everything they've got.
1. The Death of Rewards?
This is the biggest "con" for most of us. Where do you think that 2% cash back or those Delta SkyMiles come from? They are funded by those swipe fees.
If the fees get slashed, the banks lose the money they use to pay for your "free" trip to Hawaii. Opponents point to what happened after the 2010 Durbin Amendment (which capped debit card fees). After that passed, debit card rewards basically vanished overnight. If the Durbin Marshall credit card bill passes, your premium gold or sapphire card might become a lot less "premium."
2. Savings Might Not Actually Reach You
Critics are skeptical. Will Walmart really lower the price of a TV by $4 just because they saved $4 on the transaction? A study from the Federal Reserve Bank of Richmond looked at the 2010 debit changes and found that 98.8% of merchants did not lower prices. Instead, many shops just pocketed the extra profit.
3. Security Concerns and "Least-Cost Routing"
Banks argue that merchants will always choose the cheapest network, not the most secure one. If a transaction goes over a less-secure network and your data gets stolen, the bank is usually the one left holding the bag for the fraud, not the merchant. It creates a "race to the bottom" for security standards.
Key Differences: Who Wins and Who Loses?
It’s easy to get lost in the noise, so let’s break down the stakes for the real world.
The Winners:
- Mega-Retailers: Big box stores like Walmart, Target, and Kroger stand to save billions.
- Small Merchants: Local shops might finally get a break on their monthly overhead.
- Alt-Networks: Smaller processing networks will finally get a slice of the pie.
The Losers:
- Point-Hulks: People who "churn" credit cards for travel perks might see their hobby disappear.
- Community Banks: Even though the bill targets banks with over $100 billion in assets, small banks say they'll be "collateral damage" because they have to compete with the big guys' lower rates.
- Low-Income Families: If rewards disappear and banks lose revenue, they might start charging higher monthly maintenance fees or require higher minimum balances for "free" checking.
The 2026 Reality: Where Do We Stand?
As of mid-January 2026, the heat is on. With Senators Durbin, Marshall, and Welch pushing for a floor vote and the White House adding its weight, the bill has more momentum than ever before.
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But the lobbying is intense. You've probably seen the TV ads—one side says it's a "Big Box Bailout," and the other says it's about "Ending the Swipe Fee Ripoff."
The truth? It’s probably both. It will likely lower costs for businesses, but it will almost certainly change how your credit card rewards work.
What You Should Do Now
You don't have to wait for Congress to decide your financial fate. Here are some actionable steps to protect yourself regardless of what happens with the Durbin Marshall credit card bill:
- Burn Your Points: If you have a massive stash of points, consider using them. If the bill passes, issuers might "devalue" points (making them worth less) to offset their lost revenue.
- Check Your "Free" Accounts: Watch your bank statements. If banks lose swipe fee revenue, they often look for it elsewhere—like new monthly service fees. Be ready to switch to a credit union if your big bank starts nickel-and-diming you.
- Shop Local with Cash: If you want to help a small business now without waiting for a law, ask them if they prefer cash. Many will give you a "cash discount" that is better than any reward point you'd earn.
- Diversify Your Wallet: Don't rely on just one card brand. If routing changes make certain networks slower or more prone to glitches during a transition, having a mix of Visa, Mastercard, and Amex/Discover is a smart backup plan.
The "swipe fee war" is far from over. Whether you see this as a win for the little guy or a threat to your vacation fund depends entirely on how you use your wallet every day. Stay sharp.