Payments News Update – January 16, 2026
Legal and Regulatory Developments
SPOTLIGHT: Senators Reintroduce Credit Card Competition Act After Trump Endorses Bill to Lower Swipe Fees
CSP Daily News – January 14, 2026
Senators Roger Marshall (R-Kansas) and Dick Durbin (D-Illinois) reintroduced the Credit Card Competition Act (CCCA) on Tuesday after President Trump endorsed it earlier that day.
The legislation aims to break Visa and Mastercard’s grip on the payments market by requiring large banks to route transactions over competing networks, a change that could increase competition, lower swipe fees, reduce processing costs for convenience-store retailers and improve transaction security.
“Everyone should support great Republican Senator Roger Marshall’s Credit Card Competition Act, in order to stop the out of control Swipe Fee ripoff,” the president wrote on his Truth Social platform. . . .
Visa, Mastercard Rebuff Merchant Gripes
Payments Dive – January 15, 2026
Merchants wrongly discount the value of “sweeping concessions” made by Visa and Mastercard on fee cuts and other major card acceptance changes in a proposed settlement to end decades of litigation over card interchange costs, the card networks said Wednesday in a federal court filing.
Retailers, including Walmart, grocers and convenience stores, face “significant risks” proving their antitrust claims at trial and on appeal, the networks wrote in their reply to numerous objections from the merchant plaintiffs. Visa and Mastercard asked the court for preliminary approval of the settlement.
In their filing, the networks also asked U.S. District Judge Brian Cogan to reject Walmart’s request to divide the plaintiff’s class or to allow merchants to opt out. “Walmart’s interests were adequately represented by class counsel, and, to the extent it disagrees with the outcome, it will be fully heard by this Court through the settlement approval process,” Visa and Mastercard wrote. “Nothing more is required.” . . .
Revolut, Visa and Mastercard Lose UK Legal Challenge Over Fee Cap
Financial Times – January 15, 2026 (subscription may be required)
Revolut, Visa and Mastercard have lost a legal battle in the UK over a proposed regulatory cap on fees from international transactions.
The High Court in London ruled on Thursday that the UK’s Payment Systems Regulator would be within its rights to impose a price cap on cross-border interchange fees. These are levied by Visa and Mastercard on banks and have increased markedly since Brexit.
The ruling came despite intense lobbying from fintechs and banks across Europe. . . .
Senate Unveils Legislation Covering Stablecoin Rewards
PYMNTS – January 13, 2026
New Senate legislation could allow digital asset companies to continue offering rewards to stablecoin holders.
The Senate Banking Committee on late Monday (Jan. 12) introduced a “manger’s amendment” before a markup meeting scheduled for Thursday (Jan. 15).
The legislation is designed to “establish clear rules of the road for digital assets, all while protecting Main Street retail investors,” the committee’s Republicans said in a news release. . . .
A Credit Card Rate Cap Will Harm Most Consumers and the Economy, Banking Groups Argue
Digital Transactions News – January 13, 2026
The Electronic Payments Coalition and other banking industry groups late Monday warned that enacting President Trump’s proposed one-year 10% cap on credit card interest rates would cause the majority of credit card holders to lose access to credit.
President Trump, who first floated the proposal during his 2024 presidential campaign, broached the idea Friday in a post on the Truth Social platform, which is owned by the Trump Media & Technology Group. The president reiterated his stance during a press conference aboard Air Force One late Sunday.
Senators Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) last year introduced legislation capping credit card annual percentage rates at 10%. . . .
Penny Shortage Draws Federal Attention
Convenience Store News – January 12, 2026
The retail community may see some relief from the penny shortage in the coming weeks.
The Federal Reserve Financial Services (FRFS) said it will take new actions to better support the circulation of pennies for commercial activity.
Beginning on Jan. 14, the Federal Reserve will resume accepting pennies from banks and credit unions at commercial coin distribution locations providing services under arrangements with the Federal Reserve that were previously suspended. . . .
Vought Concedes on CFPB Funding
Banking Dive – January 12, 2026
Consumer Financial Protection Bureau Acting Director Russ Vought on Friday submitted a request to the Federal Reserve for $145 million in funding.
That’s the amount the agency needs to carry out its duties for the second quarter of fiscal year 2026, Vought said in a letter sent to Fed Chair Jerome Powell. The request was filed by Justice Department attorneys Friday with the U.S. District Court for the District of Columbia, where Vought has been engaged in a legal back-and-forth with the National Treasury Employees Union for nearly a year.
Vought’s capitulation followed a Dec. 30 court order from Judge Amy Berman Jackson that the CFPB must continue requesting funds from the Fed. . . .
ABA, Associations Urge Appeals Court to Reverse Debit Card Interchange Fee Ruling
ABA Banking Journal – January 12, 2026
A recent court ruling imposing a new interpretation of the Federal Reserve’s standard for setting debit card interchange fees would be “extraordinarily harmful and needlessly disruptive to the diverse set of stakeholders in the debit card market — including consumers and merchants,” American Bankers Association and six bank and credit card associations said in a court filing.
The associations last week filed an amicus brief in a lawsuit brought by a group of North Dakota retailer trade associations and truck stop Corner Post, who alleged the Fed exceeded its statutory authority to set interchange fees that are “reasonable and proportional to the cost incurred by the issuer with respect to the transaction.”
U.S. District Court Judge Daniel Traynor sided with the plaintiffs in a ruling last year. . . .
Industry Developments
SPOTLIGHT: Apple’s JPMorgan Deal Will Expand Its Financial Services Ecosystem
PYMNTS – January 8, 2026
Apple’s services strategy is anchored in hardware, turning devices into gateways for recurring engagement across payments, commerce and content.
Financial services are increasingly part of that design, where consumers already authenticate, store credentials and transact.
That strategy’s latest chapter comes as Apple announced Wednesday (Jan. 7) that JPMorgan Chase will become the new issuer of the Apple Card, replacing Goldman Sachs after a transition period of about two years. . . .
Surcharges Come With Acute Abandonment Risk, J.D. Power Research Finds
Digital Transactions News – January 13, 2026
Merchant surcharges are proving problematic for card-accepting merchants, as nearly one-third of small businesses say customers walk away from a potential transaction when faced with the extra charge, according to a study released early Tuesday by J.D. Power.
Some 35% of merchants are now surcharging when customers use credit cards, according to the study, with newly formed businesses and restaurants levying the charge more often than other sellers.
That result is virtually level with a similar J.D. Power report a year ago that found 34% assessing surcharges. The latest report, called the “J.D. Power 2026 U.S. Merchant Services Satisfaction Study,” took responses from 4,407 small businesses that use a variety of merchant-service providers. The survey effort took place from August through October. . . .
Heavy Metal’s Hot in Payment Cards
Payments Dive – January 12, 2026
Much like designer shoes and exclusive watches, the premium payment card has entered the realm of luxury goods for many consumers.
The high-end of premium cards – those such as American Express’ Platinum and JPMorgan Chase’s Sapphire Reserve – has migrated to metal for greater weight, designed to express a holder’s affluence and unique identity.
Card vendors have further responded to the trend with other materials, including glass, ceramics and cards with embedded LEDs that glow during a transaction. . . .