Credit Card Competition Act of 2023 Could Be a Boon for Restaurants

Aug 04, 2023

The U.S. Senate and House of Representatives have introduced a new A bipartisan bill called the Credit Card Competition Act of 2023 (CCCA). This bill aims to reduce credit card processing fees for businesses like restaurants, which currently rank as their third-highest cost. The bill seeks to foster competition among credit card processors, specifically targeting the dominant networks of MasterCard and Visa, which are used in about 80% of credit card transactions in the U.S. With the average restaurant paying between $20,000 and $50,000 each year in credit processing fees, this can be the gateway to significant financial relief.

CCCA would mandate the largest banks in the country (those with assets exceeding $100 billion) to issue credit cards with a minimum of two separate networks not affiliated with each other. This mandate would allow restaurant owners with the authority to opt for the most efficient and secure network for processing their credit card transactions.

card processing fees


If approved, this law would reduce swipe charges, enhance credit card security and performance, and provide annual savings of around $15 billion for businesses and consumers. Additionally, removing the obligation for operators to cover these inflated swipe fees would enable organizations like restaurants to invest in their staff, carry out essential enhancements to their establishments, and transfer the cost savings to customers.

CCCA is supported by organizations including the National Restaurant Association, International Franchise Association, National Association of Convenience Stores, National Grocers Association, Hispanic Leadership Fund, NATSO, and over 200 state and regional business associations.

Read more about the proposed legislation here.