Senators Dick Durbin, a Democrat from Illinois, and Roger Marshall, a Republican from Kansas, have once again faced defeat in their persistent efforts to push the Credit Card Competition Act (CCCA) through Congress.
This regulatory proposal, which aims to remodel the U.S. credit card system after Europe's stringent financial framework, has been met with staunch opposition. The senators' latest attempt to surreptitiously incorporate the measure into a stablecoin bill crumbled under intense scrutiny, marking yet another blow to a piece of legislation that detractors argue would disadvantage consumers, compromise data security, and favor large retailers.
According to The Blaze, the bill's unpopularity among consumers is hardly surprising. The CCCA, as it currently stands, is perceived as a thinly disguised boon for major retailers, to the detriment of virtually all other parties. Its proponents argue that it would stimulate competition in an allegedly noncompetitive market.
However, the reality of the CCCA is far from this claim. The bill would permit retailers to continue accepting well-known credit cards while processing payments through lesser-known networks, all without the knowledge or consent of consumers. The notion that the credit card market lacks competition, a fundamental premise of the bill, is baseless.
As of 2025, there are 152 credit card issuing companies in the United States. Between 2020 and 2025, market entry has grown at an average annual rate of 8.1%. This steady growth suggests a dynamic and competitive market that continues to effectively serve consumers.
The passage of the CCCA would put this progress at risk. Fraud rates, which are already escalating, would surge. Unverified payment processors would gain access to vast amounts of sensitive consumer data. The only winners in this scenario would be the retailers, who have no vested interest in cardholder safety. Meanwhile, smaller institutions, including community banks and credit unions, would see their revenue streams dwindle.
Retailers argue that these purported "cost savings" would eventually benefit their customers. However, this is as likely as businesses absorbing tariffs or taxes without increasing prices. Historical evidence suggests the contrary.
The bill would also terminate the ability of banks and credit unions to run popular credit card rewards programs. These programs are largely funded by the interchange fees charged by payment processors. When Durbin successfully passed his debit card price controls, consumers lost card benefits and saw no savings. A Wall Street Journal article highlighted this history:
Despite the lack of traction and committee markup for the bill, Durbin and Marshall remain undeterred. They recently attempted to incorporate their proposal into a "must-pass" bill, the GENIUS Act, a bipartisan bill focused on stablecoin regulations. Fortunately, Senate leadership saw through this tactic.
Polls indicate that Americans are largely satisfied with the current credit card marketplace. In fact, 77% of respondents trust credit card companies to handle key responsibilities, such as fraud prevention. Three-quarters of respondents trust their private payment networks to protect personal data. The poll also revealed that 79% of cardholders use rewards cards, and more than half (58%) use those rewards regularly. Rewards are a crucial tool that many families and businesses depend on to make purchases while also earning cash back.
Senate leadership clearly understood this sentiment. Americans have no desire to fix something that isn't broken, which is why they rightly rejected the inclusion of Durbin's credit card mandates in the GENIUS Act.
The fact that the bill did not slip in as an amendment without the opportunity for debate is a relief. Any legislation with far-reaching financial implications deserves thorough congressional scrutiny, and the voices of constituents must be heard. However, Durbin and Marshall are reportedly targeting the National Defense Authorization Act as their next legislative vehicle.
It is incumbent upon taxpayers to remain vigilant and hold their representatives accountable. Policymakers, too, must be vigilant in defending the interests of their constituents. For now, millions of Americans can breathe a sigh of relief.
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