Senator Roger Marshall moved to add a swipe fee rule to a crypto market structure bill last week, a step that briefly put card fees back in the spotlight as lawmakers weigh how to rein in rising costs for small sellers.
The change would push banks and payment networks to allow more than one route for processing card payments, giving merchants a choice that could drive down swipe fees. Some analysts also say it could have implications for crypto payment solutions in the US.
Marshall Files Swipe Fee Amendment
According to reports, the amendment filed by the Republican lawmaker would require large banks to let at least two unaffiliated networks handle debit and credit transactions.
That is meant to let merchants pick the cheapest route. Swipe fees, also called interchange fees, are usually in the 1.5%-3.5% range on most purchases.
Small stores say those charges add up fast. Reports say some retailers supported the idea because it could lower their costs and help them keep prices steady for shoppers. The amendment could even affect crypto debit card networks that process payments for digital currencies.
What The Measure Would Change
The plan echoes a long-running effort known as the Credit Card Competition Act. Under that law, the aim is to break the near-exclusive hold that a couple of big networks have on transaction routing.
Supporters argue that adding competition would force fees down. Banks and card firms warn that changing the rules might raise fraud risks and could make new rules costly to implement.
The tradeoffs are plain. Competition could mean savings for stores. It could also mean changes to how banks protect customers. Some lawmakers worry that forcing changes might unintentionally affect crypto platforms integrated with traditional payment networks.
Reports have disclosed that the swipe fee idea did not make it onto the final agenda at a recent committee markup. Marshall reportedly agreed not to press the amendment at that stage, after talks with other senators and concerns from various groups.
Some lawmakers were wary of adding a high-stakes fight to a bill they want to keep moving. The White House and some senators were said to be uneasy that the swipe fee fight might derail broader market rules being debated. Support and opposition cross party lines, which makes any final outcome uncertain.
Who Stakes ClaimMerchants and retail groups are vocal. They want lower costs now. Consumer advocates back measures that aim to lower everyday prices.
On the other hand, banks, many credit unions, and card networks say their systems are finely tuned to stop fraud and that any forced changes risk weakening those safeguards. Reports note that smaller financial firms worry about compliance costs that could hit their customers.
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