President Trump Calls Swipe Fees a "Ripoff" — What the Credit Card Competition Act Actually Does for Small Business

President Trump just called it the "Swipe Fee Ripoff" on Truth Social — and he endorsed the Credit Card Competition Act, the bipartisan legislation that would break Visa and Mastercard's grip on the payments market. For small business owners, this is the most consequential piece of payments legislation in a generation. Here's what the bill actually does, why it matters, and why dual pricing is the strategy that protects your margin no matter what Congress decides.

What President Trump said

In a Truth Social post that quickly rippled through the payments industry, President Trump called the credit card swipe fee structure a "ripoff" and endorsed the Credit Card Competition Act — bipartisan legislation co-sponsored by Senators Roger Marshall (R-KS) and Dick Durbin (D-IL), and in the House by Reps. Lance Gooden (R-TX) and Zoe Lofgren (D-CA).

When a Republican president, a conservative senator, a progressive senator, and lawmakers from both parties in the House all agree on the same bill, something unusual is happening. Swipe fees have crossed from being a small-business grievance into a mainstream political issue.

What the Credit Card Competition Act actually does

The bill is shorter than you'd think. In plain English, it requires that credit card transactions over a certain threshold be routed over at least two unaffiliated networks — meaning Visa cards couldn't be locked to Visa's network alone, and Mastercard cards couldn't be locked to Mastercard's network alone. Merchants would get to choose which network processes the transaction, just like they already do for debit cards under the Durbin Amendment of 2010.

That's it. No price caps. No rate controls. No new fees. Just routing competition.

The expected impact, according to the Merchants Payments Coalition and independent analysts: roughly $15 billion in annual savings for merchants and consumers, driven by competition between networks bidding to handle each transaction.

Why Visa and Mastercard are fighting it

Together, Visa and Mastercard control over 80% of the credit card market in the United States. They set interchange rates that flow to issuing banks, and they protect that pricing power by being the only networks authorized to process transactions on the cards they issue. The CCCA cracks that monopoly.

The card networks have spent millions lobbying against the bill, arguing it will hurt rewards programs and create security risks. Independent analysis disputes both claims — the Durbin Amendment did neither for debit cards, and routing competition has existed in dozens of other countries for years without security incidents.

The truth is simpler. Routing competition costs Visa and Mastercard money. That's the whole fight.

What this means for small business owners right now

Here's the part most coverage misses. Even if the Credit Card Competition Act passes tomorrow, it could take 12 to 24 months for the rule-making process to play out, and the actual savings would phase in gradually as networks renegotiate. In the meantime, you're still paying 2.5% to 3.5% of every credit card transaction in fees — every day, every week, every month.

Legislation is slow. Your margin pressure is fast.

That's the case for not waiting on Washington.

Dual pricing is the strategy that wins regardless

Here's the truth that doesn't depend on what Congress does. With dual pricing, you stop paying percentage-based processing fees today — not in 24 months, not after rule-making, not pending lawsuits from Visa and Mastercard. Customers see two clearly displayed prices, choose how they want to pay, and you keep your full posted price on every credit card transaction. Cash customers get a discount. The math works for everyone except the card networks.

If the Credit Card Competition Act passes and processing rates eventually fall, you win again — your already-low costs go even lower. If the bill stalls or gets watered down, you're still protected. Dual pricing is the only payment strategy that doesn't depend on the outcome of a Congressional fight.

The bottom line

President Trump is right that swipe fees are a ripoff. Senators Marshall and Durbin are right that routing competition is the structural fix. The Credit Card Competition Act is the most serious threat to Visa and Mastercard's pricing power in 15 years, and it deserves to pass. But the fastest, most reliable way for a small business owner to stop overpaying is to stop today. Dual pricing eliminates the fee at the source — and at Compassion Processing, 25% of our profits go directly to vetted 501(c)(3) charities, so your switch creates community impact while it protects your margin.

Don't wait on Washington. Request a free statement audit and find out exactly what you're paying and what you'd save.

Compassion Processing is a merchant services provider championing conscious capitalism through dual pricing and a 25% nonprofit profit share. We're processor, software, and hardware agnostic — finding the best fit for your business, not the highest commission for ours. Learn more about dual pricing or call 904-822-5371.