Sponsors (9)
The bill opens credit-transaction routing to competing networks to lower merchant processing costs and spur payment innovation, but risks shifting costs to consumers or networks, creates compliance burdens for large issuers, and could limit use of networks labeled as national-security risks.
Small-business owners and middle-class families can route credit transactions to competing networks, which may lower processing fees and reduce costs for merchants and consumers.
Financial institutions and payment-technology firms face fewer restrictions on exclusive routing and authentication, increasing competition among networks and encouraging innovation in payment services.
Middle-class families and cardholders could see higher out-of-pocket costs if payment networks raise other fees or reduce card rewards to make up for lost interchange revenue.
Merchants and cardholders that rely on certain networks could be stigmatized or have access limited if a public list designates networks as national-security risks.
Large covered issuers (assets > $100B) will incur compliance and implementation costs to enable multi-network routing and update systems.
Based on analysis of 2 sections of legislative text.
Prohibits exclusive-network routing restrictions for covered credit cards and directs the Federal Reserve to write rules and publish a national-security list of risky payment networks.
Official title: To amend the Electronic Fund Transfer Act to require the Board of Governors of the Federal Reserve system to prescribe regulations relating to network competition in credit card transactions, and for other purposes.
Introduced January 13, 2026 by Lance Gooden · Last progress January 13, 2026
Prohibits covered credit-card issuers and payment card networks from enforcing exclusive routing or network restrictions for covered credit cards and directs the Federal Reserve to write implementing rules within one year. The Fed must also publish and periodically update a public list of payment card networks that pose national security risks or are owned/operated/sponsored by a foreign state entity. Final regulations take effect 180 days after the Fed issues them.