S.Amdt. 4305

This amendment, titled the Credit Card Competition Act, aims to add a new section to H.R. 6644 to increase competition in how credit card transactions are processed.

The amendment seeks to change the Electronic Fund Transfer Act by requiring the Board to create regulations that stop certain card issuers and payment networks from restricting which networks are used to process credit transactions. Specifically, it aims to:

• Stop Exclusive Networks: Prevent covered card issuers (those with assets over $100 billion) or payment networks from restricting transactions to only one network, or to a small group of affiliated networks.

• Remove Routing Restrictions: Stop these entities from blocking a merchant's ability to choose which payment card network routes the transaction, provided that network is not on a national security risk list.

• Prevent Technical Barriers: Prohibit the use of security technologies, like tokenization, to block other networks from processing transactions.

• Ban Penalties: Ensure no one is penalized or disadvantaged for choosing how to route an electronic credit transaction.

• Manage Security Risks: Require the Board and the Secretary of the Treasury to maintain a public list of payment networks that are owned by foreign state entities or pose a risk to U.S. national security.