WASHINGTON — Four of the nation’s largest labor unions have endorsed the Credit Card Competition Act (CCCA), urging the Senate Agriculture Committee not to sideline credit card swipe-fee reform as it considers cryptocurrency legislation, the Merchants Payments Coalition reported.
In a letter to the committee, the International Brotherhood of Teamsters, Service Employees International Union (SEIU), United Food & Commercial Workers (UFCW), and the Retail, Wholesale and Department Store Union argued that high swipe fees worsen the affordability crunch facing working families. The unions said reform would reduce what they describe as excessive profits by card networks and large financial institutions, while boosting consumers’ buying power.
The endorsement comes as Senate sponsors of the CCCA — Sens. Richard Durbin (D-IL, Roger Marshall (R-KS), and Peter Welch (D-VT) — are no longer expected to push an amendment attaching the bill to pending crypto market legislation, according to some Washington analysts. Even so, the unions urged lawmakers to keep swipe-fee reform on the agenda, citing Federal Reserve research showing the fees disproportionately burden lower-income consumers.
Merchant groups welcomed the unions’ support, saying it broadens political momentum behind the long-debated measure. The Merchants Payments Coalition said swipe fees inflate retail prices and act as a hidden tax on everyday purchases, while adding pressure on small businesses already facing rising costs.
The CCCA would require large banks to enable credit cards to route transactions over at least two unaffiliated networks, increasing competition among payment processors. Supporters argue the change could save merchants and consumers roughly $17 billion annually without affecting rewards programs, card security, or most community banks and credit unions. Swipe fees — largely set by Visa and Mastercard — climbed 70% since the pandemic to a record $187.2 billion in 2024, according to industry estimates.