WeVote
Log In

Bill

Bill

S 3623

Credit Card Competition Act of 2026

119th Congress Introduced by Dick Durbin and 5 co-sponsors

The bill directs the Fed to curb exclusive networks and routing restrictions in credit card processing to boost competition and routing choice.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 3623

Overview

  • Bill: S.3623 (Credit Card Competition Act of 2026)
  • Purpose: Amend the Electronic Fund Transfer Act to empower the Federal Reserve Board to regulate network competition in credit card transactions and promote routing choice and competition among payment card networks.
  • Introduced in the Senate January 13, 2026. Primary sponsors include Senators Marshall, Durbin, Welch, with several co-sponsors.

What the bill would do

  • Create a framework to increase competition and reduce network exclusivity in credit card processing.
  • Require the Federal Reserve Board (the Board) to issue regulations that limit exclusive network practices and routing restrictions by covered card issuers and payment card networks.
  • Establish a list and ongoing assessment mechanism to identify national security risks associated with payment card networks (in consultation with the Treasury).

Key provisions and changes

  1. No Exclusive Network (subsection (b)(2)(A))

    • By no later than 1 year after enactment, the Board must prescribe regulations prohibiting covered card issuers or networks from restricting the number of networks on which electronic credit transactions may be processed.
    • Allowable network counts:
      • 1 network; or
      • 2 or more networks if:
      • each is owned/operated by affiliated entities or networks affiliated with the issuer, or
      • both networks are the two largest in U.S. market share (as determined by the Board), subject to ongoing reevaluation.
    • The Board must determine, at intervals starting 3 years after regulations take effect and every 3 years thereafter, whether the two largest networks have changed; if they have, the two-network rule loses force.

  2. No Routing Restrictions (subsection (b)(2)(B))

    • Within 1 year after enactment, the Board must issue regulations prohibiting:
      • Direct or indirect penalties, terms, or technologies that inhibit card issuers or cardholders from directing routing of electronic credit transactions to any network that can process the transaction and is not on the Board’s list.
      • Requirements that force exclusive use of certain authentication, tokenization, or security tech across networks.
      • Penalties on networks for enabling routing flexibility or for not routing a set number or dollar amount of transactions through a specific network.

  3. Applicability (subsection (b)(2)(C))

    • Rules under subparagraphs (A) and (B) do not apply to credit cards issued in a 3-party payment system model.

  4. National Security List (subsection (b)(2)(D))

    • By 1 year after enactment, the Board must create a public list of networks whose processing of electronic credit transactions poses a national security risk or are owned/ sponsored by foreign state entities.
    • The Board must update this list at least every 2 years, in consultation with the Treasury.

  5. Definitions (subsection (b)(2)(E))

    • Key terms defined for clarity, including:
      • “Covered card issuer” (assets above $100 billion, combined with affiliates)
      • “Electronic credit action” includes card-present and card-not-present transactions
      • “Licensed member” includes issuers, acquirers, and other entities authorized to issue, screen/accept into programs, process, and settle transactions bearing a given network’s logo.

  6. Enforcement (section 2(b)(1) and 2(a))

    • The bill clarifies regulatory authority boundaries, with the Federal Reserve Board implementing major provisions and the Bureau of Consumer Financial Protection (CFPB, referenced as the Bureau) not having enforcement authority over these specific requirements.

  7. Effective date (section 2(b))

    • Regulations issued by the Board under the act become effective 180 days after the final version is prescribed.

Who would be affected

  • Covered card issuers (large issuers and their affiliates)
  • Payment card networks operating in the U.S.
  • Licensed members (issuers, acquirers, processors) participating in card networks
  • Consumers and merchants who accept credit cards (via routing choices and potential changes in network routing practices)

Procedural and timeline notes

  • Key regulatory deadlines:
    • Regulations banning exclusive networks: within 1 year after enactment.
    • Regulations prohibiting routing restrictions: within 1 year after enactment.
    • National security list creation: within 1 year after enactment; updates at least every 2 years.
    • Final regulations take effect 180 days after the Board prescribes them.
  • Ongoing annual/quadrennial review: Board must reassess the largest networks every 3 years.

Overall, the bill aims to foster competition and routing choice in credit card processing while safeguarding against national security risks.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.