Trump Backs Credit Card Competition Act to Curb Record Swipe Fees

President Trump has announced his support for the Credit Card Competition Act, a legislative move aimed at reducing transaction costs for small businesses. The endorsement comes as swipe fees hit a record high of $187.2 billion in 2024, placing a significant strain on retail operations. Currently, Visa and Mastercard dominate the market, charging merchants fees ranging from 2% to 4% for every transaction processed. The proposed act seeks to dismantle this duopoly by allowing businesses to choose from multiple processing networks, fostering price competition. This development poses a direct threat to the high-margin revenue streams of major payment processors and large card-issuing banks. While bearish for financial giants, the legislation could provide much-needed relief to the broader retail sector.