Credit card swipe fees are back in the national spotlight — and this time, they have bipartisan attention.
In January 2026, Donald Trump publicly backed a long-running proposal from Dick Durbin aimed at lowering credit card interchange fees. The legislation, known as the Credit Card Competition Act, has been reintroduced with Republican Senator Roger Marshall and is once again fueling debate across the payments industry.
For practices, the conversation is familiar — and long overdue.
Why Swipe Fees Matter So Much to Practices
Swipe fees typically range from 2% to 4% per transaction, and for practices operating on thin margins, that adds up fast.
According to Durbin, the average American family pays nearly $1,200 per year in swipe fees. But practices feel the impact directly. One Chicago restaurant cited in the report paid over $200,000 in swipe fees in a single year, with pretax profit margins hovering between 3% and 5% — a range that mirrors many independent healthcare and professional practices.
When a single cost line item rivals or exceeds total profit, it’s no longer a back-office issue — it’s an operational one.
What the Credit Card Competition Act Proposes
The proposed legislation would require large banks (those with more than $100 billion in assets) to enable at least two unaffiliated card networks on credit cards, including at least one outside the dominant networks.
Today, Visa and Mastercard control roughly 85% of the U.S. credit card market. Supporters argue that increased routing competition would drive down interchange costs for practices.
Opponents — including banks and credit unions — warn that the change could reduce transaction security and threaten popular credit card reward programs.
Regardless of outcome, one thing is clear: swipe fees are no longer an invisible expense.
The Reality Practices Face Today
Legislative solutions take time. Court challenges, regulatory delays, and industry resistance mean meaningful relief — if it comes — may still be years away.
In the meantime, practices are left with two options:
Absorb swipe fees and watch margins erode
Pass costs along through higher prices or added fees
Neither is sustainable long-term.
This is why more practices are turning to practice-controlled pricing strategies that work under current rules — not future legislation.
How Practices Can Take Control Now
At PayLow Pro, we work with practices that are tired of waiting for Washington to solve a problem they face every day.
Instead of relying on policy changes, practices are implementing solutions such as:
Dual Pricing – Clearly posting separate prices for cash and card payments, with card costs built transparently into the card price
Compliant Surcharging – Where permitted, offsetting processing costs while following card brand and state disclosure rules
Integrated Payment Technology – Ensuring fees are calculated consistently across in-office, online, and recurring payments
These approaches don’t eliminate swipe fees — but they give practices control over how those costs are managed, without hidden charges or patient friction.
Illinois: A Preview of What’s Coming?
Illinois has already passed the Interchange Fee Prohibition Act, which would ban interchange fees on taxes and tips. Although the law is delayed and tied up in court, it signals a broader trend: regulators are paying closer attention to payment costs.
For practices, this reinforces the importance of using transparent, defensible pricing models today.
The Bottom Line for Practices
Swipe fees are real. They’re measurable. And for many practices, they represent one of the largest controllable expenses.
Whether or not the Credit Card Competition Act becomes law, practices don’t have to wait to protect their margins.
PayLow Pro helps practices manage swipe fees now with compliant, transparent pricing strategies that work in today’s environment — not someday. If you would like to run a compliant processing program that saves up to 4% of your profits on every swipe, contact us today.
