Credit Card Competition Act of 2023

The Credit Card Competition Act of 2023 (S 1838) requires major credit card companies (with over $100 billion in assets) to allow merchants to choose any payment network for processing credit card transactions, ending exclusive deals that limited merchants to one or two networks. It prohibits restrictions on routing transactions to different networks and mandates the Federal Reserve to create a public list of payment networks posing national security risks. The law directly affects large card issuers, payment networks, and merchants processing credit card payments across the U.S. The key change is enabling competition by removing contractual barriers that previously favored dominant networks.