“You could lose your credit card.”
“Tell Senator Roger Marshall to stop pushing credit card price controls.”
If you’ve seen those warnings on television or social media recently, you’re not alone. A wave of ads funded by the Kansas Bankers Association and the Electronic Payments Coalition is urging Kansans to pressure the state’s U.S. senator over proposals that could reshape how credit cards work in America.
Those ads may have left many people confused about what Marshall is actually trying to do.
Here’s a closer look.
A Bipartisan Effort
Marshall, a Republican, has joined with Democratic Sen. Dick Durbin of Illinois on a bipartisan proposal known as the Credit Card Competition Act.
The bill targets the fees businesses pay every time someone uses a credit card — commonly called “swipe fees.”
Currently, most credit card transactions in the United States are routed through two payment networks: Visa and Mastercard. Together they process roughly 80% of the country’s credit card payments.
Retailers say that lack of competition allows those networks and the large banks that issue the cards to charge higher fees than they would in a more competitive system.
Marshall’s bill would require the largest banks — those with more than $100 billion in assets — to allow credit cards to be processed over at least two competing payment networks, rather than just one.
Supporters say that change would allow merchants to route transactions through the cheaper network, forcing companies like Visa and Mastercard to compete on price.
Marshall argues that increased competition could help lower the cost of everyday purchases.
“The average American family is being ripped off by big banks who profit billions from swipe fees,” Marshall said when introducing the legislation. “It’s time to bring real competition to a market dominated by Visa and Mastercard.”
Some studies cited by supporters suggest the change could reduce the cost of goods such as groceries and gas by 1% to 2%.
Why Banks Are Fighting the Bill
Banks, credit card companies and payment networks have mounted a strong campaign against the Credit Card Competition Act.
Their main concern is the potential loss of revenue from swipe fees which are shared by the bank that issued the card and the network that processed the payment.
Banking groups argue that if those fees fall because of increased competition, card issuers could be forced to respond by cutting back rewards programs, raising other fees or lowering credit limits for some customers.
Marshall says those warnings are overstated and aimed at protecting an industry that is already highly profitable.
He notes that credit card companies report profit margins between roughly 45% and 55%, while major banks often operate with margins of 20% to 30%.
“That’s a lot of wiggle room,” Marshall said in a recent interview. “I would never feel sorry for Wall Street banks or credit card companies that are making money hand over fist.”
Supporters
Supporters of the bill say the current system allows banks and payment networks to collect billions of dollars in fees each year with little competition.
Retailers and small businesses argue those costs ultimately show up in the prices consumers pay for everyday purchases.
They also point out that credit card processing fees in the United States are significantly higher than in many other countries. In places such as the European Union and Canada — where regulators have imposed limits or encouraged more competition — swipe fees are far lower than what American merchants typically pay.
Kansas Banks Not Affected
Marshall has also pushed back on criticism from banking groups in Kansas.
He says the bill would apply only to the nation’s largest banks — those with more than $100 billion in assets — and would not impact community banks.
According to Marshall, no Kansas-based banks meet that threshold, meaning the state’s local banks would be exempt from the changes.
That’s one reason he has questioned why Kansas banking groups have joined the campaign against the proposal. Supporters suggest smaller banks may still worry that once regulations begin targeting large institutions, lawmakers could eventually expand the rules to include community banks as well.
Part of a Larger Fight Over Fees
Marshall’s proposal is part of a broader, long-running debate over the costs Americans pay for credit card and banking services.
In recent years, lawmakers and consumer advocates have pushed for rules aimed at reducing some of the most common fees charged by banks.
Under the Biden administration, the Consumer Financial Protection Bureau (CFPB) finalized or proposed several rules designed to lower those costs.
One rule would have limited overdraft fees, saving consumers an estimated $5 billion per year.
Another proposal would have capped credit card late fees, which regulators estimated could save Americans roughly $10 billion annually.
But many of those efforts have stalled.
Congress overturned the overdraft rule, and the late-fee rule was challenged in court. After the Trump administration took control of the CFPB in early 2025, the agency chose not to defend that rule in court, allowing the higher fees to remain in place.
According to a report released by Sen. Elizabeth Warren’s office, the rollback of enforcement actions and consumer protections at the CFPB has cost Americans an estimated $19 billion in lost financial protections and relief.
Trump’s Interest Rate Proposal
At the same time, President Donald Trump has introduced another idea aimed at reducing credit card costs — a temporary cap on interest rates.
In January, Trump called on credit card companies to limit their interest rates to 10% for one year, giving banks just 10 days to comply.
In announcing the proposal, Trump said the move was meant to stop Americans from being “ripped off” by credit card companies charging interest rates of 20% to 30% or more.
The White House said the president expects banks to follow through.
“I don’t have a specific consequence to outline for you, but certainly this is an expectation — and frankly a demand — that the president has made,” White House Press Secretary Karoline Leavitt said when asked about the proposal.
But more than a month later, most banks have not lowered their interest rates.
Experts say a nationwide interest rate cap would likely require legislation from Congress in order to be enforceable.
A Debate With Big Stakes
The fight over Marshall’s proposal highlights a larger debate about the power of banks and payment networks in the credit card industry.
Supporters argue the current system allows a small number of companies to dominate the market and charge fees that ultimately raise prices for consumers.
Opponents warn that forcing changes to the system could reduce access to credit and eliminate popular rewards programs.
For now, the issue remains unresolved — even as television ads continue urging Kansans to pick up the phone and tell their senator where they stand.
