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The proposed Credit Card Competition Act of 2023 (CCCA) aims to amend the Electronic Fund Transfer Act to promote network competition in credit card transactions. The CCCA prohibits large card issuers (defined as card issuers with assets over $100 billion) from restricting transactions to a single network and limits merchants’ routing restrictions. It also excludes three-party payment systems.

In their recent article “The Credit Card Competition Act of 2023: Elements and Potential Impact” published by Competition Policy International (CPI), Managing Director Ling Ling Ang, Director Alan Grant, and Consultant Peter Traber examine the potential impacts of the CCCA, including the possibilities of decreased interchange fees, changes in network quality, and reduced consumer rewards. The authors conclude that merchants may gain more transactions’ routing power, affecting network competition and investment, while consumers might shift to other payment methods, influencing costs and credit availability.