Credit Card Competition Act - Perspective

As of this writing, there is no finalized “Credit Card Competition Act 2025.” What has existed are various proposals, often referred to under this name, introduced in several congressional sessions. The following points assume a future scenario in which an expanded version of this Act is passed, leading to significant implications for Acquirers.

Firstly, routing requirements and technological changes will require Acquirers to handle multiple networks on each credit card, instead of defaulting to Visa or Mastercard alone. This adds complexity and operational overhead, necessitating upgrades in routing logic, software infrastructure, and staff training. Acquirers may also need to form or revise agreements with alternative or smaller networks.

Next, the Act aims to spur competition among networks, potentially lowering interchange fees. While Acquirers themselves do not collect interchange, these fees shape the total costs faced by merchants, affecting Acquirers’ competitive positioning. In response, Acquirers could provide “smart routing” solutions, which might become a key differentiator if they allow merchants to automatically select cheaper or faster networks.

Compliance and regulatory obligations may also increase. Acquirers could face strict scrutiny to ensure they are not improperly steering transactions or violating non-discrimination rules. Existing contracts with major networks could need renegotiation to align with new regulations. Moreover, shifting fee structures and pass-through costs may push Acquirers to reevaluate how they set their own discount rates.

Finally, by offering an opening for smaller or newer networks to gain market share, the legislation might drive market consolidation if larger Acquirers can better absorb compliance expenses. Overall, if this Act passes, Acquirers should expect greater routing complexity, higher technology costs, and intensified merchant pressure to minimize fees, but also opportunities to stand out through advanced routing features, strategic pricing, and innovative partnerships. The industry landscape is poised for change, with both challenges and opportunities ahead.