Legal and Regulatory Developments

SPOTLIGHT: Durbin to Reintroduce Credit Card Competition Bill
Payments Dive – February 25, 2025

Senate Minority Whip Dick Durbin plans to reintroduce the Credit Card Competition Act bill sometime “soon,” according to a spokesperson for his office.

It’s not clear whether the Democrat will strike an alliance again on the legislation with Republican Sen. Roger Marshall, but that would seem likely given Marshall’s strong support previously for the bill as a co-sponsor. A spokesperson for the Kansas Republican didn’t immediately respond to a request for comment.

The bill would land this year in a changed political environment with President Donald Trump now in the White House and the Senate also held by a Republican majority, giving that party control of Congress. Durbin first introduced the legislation in 2022. . . .

Observers and Lawmakers Handicap the CCCA’s Chances as It Heads Back to Congress
Digital Transactions News – February 26, 2025

With expectations growing that the Credit Card Competition Act will soon be reintroduced in Congress, proponents of the bill feel its prospects for passage are better than ever. Helping fuel this optimism is growing bipartisan support for the bill, proponents say.

“The Senate Judiciary Committee [hearing in November] showed there was a lot of support across the aisle, and even skeptics indicated it would pass. It is just a question of when,” says Doug Kantor, an executive committee member for the Merchants Payments Coalition and general counsel for the National Association of Convenience Stores. “From our perspective, there is a lot of support across the aisle.”

Kantor was referring to a November Senate Judiciary hearing on credit card swipe fees during which the CCCA was discussed. . . .

Trump Admin Denies Plans to Shutter CFPB, Court Papers Say
Reuters – February 25, 2025

Lawyers for President Donald Trump’s administration have denied that the White House intends to dismantle the U.S. Consumer Financial Protection Bureau, apparently contradicting statements the president himself made to reporters earlier this month.

In court filings submitted late Monday, Justice Department attorneys rejected claims from a union representing CFPB workers that seeks a court order halting efforts effectively to destroy the agency.

The government, however, did acknowledge that a more “streamlined” agency will need less office space and that the agency had decided to cancel the lease for its headquarters, where signage has already come down. . . .

Bill to Ban Banks and Credit Card Companies From Marking Up Sales Taxes and Tips
Contra Costa News – February 25, 2025

Assemblymember Liz Ortega (D–San Leandro) introduced Assembly Bill 1065, which would close a loophole that allows credit card companies to charge extra fees on the sales taxes that every other business is required by law to collect, account for, and remit at no cost to the state.

“It’s absurd to require businesses to collect and track taxes at their own expense while allowing credit card companies to mark up those same taxes for a profit,” said Assemblymember Ortega. “AB 1065 will close that loophole and provide some economic relief to our small businesses and their customers. And while we’re at it, we should stop them from making a profit on the tips customers give to workers who serve them.”

State law requires businesses to collect and remit sales taxes and tips, at their own expense, as a condition of doing business. Credit and debit card companies charge businesses a “swipe fee”—usually 2 to 4%—for using their network, even on taxes and tips. . . .

Mastercard Wins Green Light for £200M Swipe Fee Settlement
Law360 – February 21, 2025 (subscription required)

The Competition Appeal Tribunal said Friday it would approve a £200 million ($250 million) settlement between Mastercard and Walter Merricks to end litigation over credit card fees, despite “some concerns about how the matter was dealt with” in the lead-up to the deal being reached.

Justice Peter Roth said in a short oral judgment that, although a settlement of £200 million was “clearly a very disappointing outcome” for a claim once valued at £14 billion, much has happened since the proceedings began almost a decade ago.

“Looking at the matter today, we have no doubt that a settlement of £200 million at the terms proposed is just and reasonable,” Justice Roth said on behalf of the tribunal of three people. . . .

D.C. Aims to Crack Down on Credit Card Swipe Fees
Axios – February 20, 2025

D.C. is gearing up to fight a covert charge that can cost businesses thousands of dollars and jack up prices: credit card swipe fees.

Why it matters: Credit card companies and banks charge processing fees for every tap and swipe, which adds up — and can increase your bill — but new legislation aims to lessen their impact.

Driving the news: D.C. Councilmember Charles Allen will soon introduce the Fair Swipe Act of 2025. Under the bill, processing fees would have to be charged without sales tax and gratuity included in the total. . . .

Industry Developments

SPOTLIGHT: PayPal Previews a Commerce API and Links Up With Verifone
Digital Transactions News – February 25, 2025

PayPal Holdings Inc.’s chief executive laid out a unified commerce strategy early Tuesday for both online and in-store merchants that includes a new application programming interface and a link with Verifone Inc., a major provider of in-store payment devices.

“This is a new PayPal. We are transforming from a payments company into a commerce platform,” said chief executive Alex Chriss in addressing the audience for his company’s investor-day presentation in New York City. “We see an opportunity to revolutionize commerce.”

The new commerce API, which is under construction, follows on a strategy to spur profitable growth for the company, Chriss said, and is being built leveraging artificial intelligence and using PayPal’s vast store of consumer and merchant data. . . .

Worldwide Card Use to Jump 43% by 2029, Nilson Predicts
Payments Dive – February 21, 2025

Credit, debit and prepaid card activity worldwide will climb 43% to nearly 1.11 trillion transactions by 2029, relative to 2024, research firm Nilson Report predicted last month. That includes consumer and commercial card use on UnionPay, Visa, Mastercard, American Express, JCB, Discover and Diners Club cards.

The Asia-Pacific region will experience the biggest increase (46.8%) while the U.S. will see the smallest rise (27%), according to the Nilson forecast, which only included cards tied to global networks and not domestic-only networks.

The predictions echo trends seen over the past decade as the number of U.S. card transactions more than doubled, but also showed the smallest increase relative to markets worldwide, Nilson statistics showed. . . .

Read Payments News Update – February 28, 2025 at constantinecannon.com