Bill > HR7035

This bill, titled the "Credit Card Competition Act of 2026," mandates that the Board of Governors of the Federal Reserve System (often referred to as the "Board") create new regulations to promote competition in credit card transactions. Specifically, the bill aims to prevent "covered card issuers" (large financial institutions with over $100 billion in assets) and payment card networks from restricting the number of networks through which a credit card transaction can be processed to just one, or to a limited set of affiliated networks. Instead, issuers and networks must allow transactions to be processed on at least two networks, including the two with the largest market share in the U.S., unless a network is identified as a national security risk or is owned by a foreign state entity, in which case it would be placed on a public list maintained by the Board. Furthermore, the regulations will prohibit restrictions on merchants' ability to choose which network processes a transaction and prevent the requirement of exclusive security technologies for specific cards. These rules will not apply to credit cards issued within a "3-party payment system model," which is defined as a card issued by a network itself or an entity commonly owned with the network. The Board will have up to three years to make initial determinations about market share and will periodically update this list. The regulations are set to take effect 180 days after they are finalized.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/7035/all-info