President Donald Trump took another jab at credit card swipe fees during a speech Wednesday at the Republican midterm convention in Dallas.
The president pledged to reduce the fees associated with credit card transactions to save the average American family $1,200 annually, though he didn’t say how that would be accomplished. He also didn’t mention that merchants pay those transaction fees and it’s up to them whether any savings are passed to consumers.
“We’ll cut out-of-control credit card swipe fees,” Trump said during the speech, contending that the fees are “seven to eight times” higher than the fees paid in other countries. “We’ll straighten it out very quickly.”
It was one of many promises the Republican president made during his speech as he seeks to buttress Republican candidates for the midterm elections. The House and Senate seats that are up for grabs during the election could shift the balance of power in Congress to the Democrats and against Trump if that party wins a majority in the two houses.
The president has previously backed the Credit Card Competition Act, which would require banks that issue credit cards to inject more competition into how such transactions are processed. Currently, the two biggest U.S. card networks, Visa and its smaller rival Mastercard, dominate the processing, but the proposal would require a third network be available to merchants for processing card purchases.
Retailers, restaurateurs and other merchants have long complained about card fees that they must pay when consumers swipe credit cards to pay for goods and services. They’ve battled for years to help move forward legislation to cut the fees, including decades ago with the Durbin Amendment.
Most recently their trade groups have backed the bipartisan CCCA legislation, proposed by the Republican Sen. Roger Marshall and retiring Democrat Sen. Dick Durbin. Trump has previously praised Marshall for the legislation, and has backed the senator as he faces a re-election fight against a United Methodist pastor in Kansas.
The Merchants Payments Coalition, which supports the legislation, noted in a press release Wednesday that it was the third time this year that Trump has egged on credit card fee reform to lower the cost of such transactions.
“President Trump is right that dealing with credit card swipe fees would be one of the most effective ways to help American families,” MPC Executive Committee member Doug Kantor said in the release. “Credit card swipe fees drive up costs for small businesses and prices for American families every day,” said Kantor, who is also the general counsel for the National Association of Convenience Stores.
The legislation gained three more supporters in the Senate last month, including Sens. Bernie Moreno (R-OH), and Cynthia Lummis (R-WY) and Sen. Angus King, an independent from Maine. In the House, key sponsors of the legislation are Reps. Lance Gooden (R-TX) and Zoe Lofgren (D-CA).
Nonetheless, the banks and credit card companies have mounted a fierce fight against the legislation and have managed to fend it off for years, including successfully keeping it from being attached to other major pieces of legislation.
The Electronic Payments Coalition, which includes bank, credit union and card network members, argues that merchants have significantly increased their revenue over the past decade by way of credit cards while the fees have remained relatively flat.
“Supporters of the Durbin-Marshall credit card mandates have spent years building their case on cherry-picked statistics, half truths and numbers stripped of critical context,” that group said in a press release earlier this month.
Facts Only
* President Donald Trump spoke at the Republican midterm convention in Dallas regarding credit card swipe fees.
* Trump pledged to reduce these fees, aiming for an estimated annual savings of $1,200 for the average American family.
* Trump asserted that credit card fees are seven to eight times higher than those in other countries.
* The method for achieving the fee reduction was not stated by Trump.
* Previously, the president backed the Credit Card Competition Act, which aims to inject competition into credit card transaction processing.
* Retailers and merchants have historically complained about card fees.
* The Merchants Payments Coalition noted that this was the third time Trump advocated for credit card fee reform this year.
* The legislation has gained support from several senators and representatives in both the House and Senate.
* The Electronic Payments Coalition argues that merchant revenue has increased while fees have remained relatively flat.
Executive Summary
President Trump pledged to reduce credit card swipe fees, aiming to save the average American family $1,200 annually, though the method for achieving this reduction was not specified. Trump contended that current credit card swipe fees are seven to eight times higher than those in other countries and stated an intention to resolve the issue quickly. This proposal surfaced during a speech at the Republican midterm convention.
The context involves ongoing efforts by various groups to implement changes to card processing fees. Retailers, restaurateurs, and merchants have long sought fee reductions, having previously engaged in battles like the Durbin Amendment. The Merchants Payments Coalition noted that this was the third time this year Trump advocated for credit card fee reform. Supporters of the Credit Card Competition Act include several Republican senators and an independent. Conversely, the Electronic Payments Coalition argues that merchants have increased revenue over the last decade while fees remained stable. A coalition of financial entities opposes the proposed legislation, citing arguments that merchants have increased revenue via credit cards while fees are flat, and suggesting prior efforts were based on incomplete data.
Full Take
The narrative surrounding credit card fee reduction involves a conflict between the stated goal of reducing consumer costs and the complex economic interests of the payment ecosystem. The tension exists between the populist appeal of saving families $1,200 annually and the resistance mounted by established financial networks who argue that fee structures are necessary to compensate for increased merchant revenue over time. The framing often relies on contrasting figures—Trump's assertion about international comparison versus industry claims about retained revenue—which creates a gap in how value is calculated.
The pattern observable here is the deployment of an external, high-level claim (saving families money) as a political lever, while deliberately obscuring the mechanics or potential trade-offs (who pays the fee and how savings are distributed). This reliance on broad appeals risks overshadowing the specific economic arguments presented by vested interests regarding market structure and growth. The resistance from card networks suggests an understanding that structural changes inevitably redistribute existing value, which is where disputes over statistics and context become critical battlegrounds. The implication is that political advocacy often prioritizes a simple, easily digestible outcome over the granular reality of systemic shifts.
Bridge Questions: If the goal is truly to reduce costs, what specific mechanisms are most feasible—regulatory intervention versus mandated competition? How should policymakers weigh immediate consumer relief against the long-term stability and revenue generation capacity of merchant businesses? What data frameworks are necessary to move beyond contested statistics regarding fee impact?