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If you've been following financial news lately, you've probably heard about the Credit Card Competition Act.
This legislation has the potential to reshape the way credit card rewards work in the United States. And for churches, nonprofits, and mission-driven organizations that rely on card spending for budgets, events, and ministry operations, the implications are worth understanding now, before anything changes.
Here's what the Credit Card Competition Act is, what it could mean for your rewards programs, and what your organization should be doing in the meantime.
What Is the Credit Card Competition Act?
The Credit Card Competition Act (CCCA) is a bipartisan bill that has been reintroduced in Congress multiple times, originally introduced in 2022 and reintroduced in subsequent congressional sessions. The bill has received renewed attention as lawmakers and industry groups continue debating how credit card fees should be regulated.
At its core, the bill is designed to break up what supporters describe as Visa and Mastercard’s dominance in card routing. Right now, when a merchant accepts a credit card payment, they have little to no say in which payment network processes the transaction. If a customer pays with a Visa card, that transaction runs on Visa's network, period.
The Credit Card Competition Act would change that. It would require large banks (those with more than $100 billion in assets) to enable at least two unaffiliated payment networks on their credit cards. That way, merchants could choose to route a transaction through whichever network offers them the best rates (which, in theory, would introduce competition and drive down the fees merchants currently pay).
Those fees (called interchange fees, or "swipe fees") currently run around 2–3% of every transaction, and they've been rising. In 2024, total credit and debit card swipe fees hit a record more than $170 billion annually, with Visa and Mastercard credit cards accounting for the bulk of that total.
Why Does This Matter for Rewards Programs?
Here's where it gets important for your organization.
Those interchange fees aren't just profit for payment networks and banks. A large portion of that revenue is what funds the credit card rewards programs that millions of organizations and individuals rely on (cash back, points, miles, and other perks).
If the Credit Card Competition Act passes and merchants begin routing transactions through cheaper, competing networks, banks would collect less interchange revenue. The concern, and the source of significant debate, is whether banks would respond by cutting back on rewards programs to offset that lost income.
Opponents of the bill, including major banks and travel rewards advocates, point to what happened with debit cards as a cautionary example. When the Durbin Amendment passed in 2011 and imposed fee caps on debit card transactions, banks scaled back debit rewards significantly. Most debit card rewards programs were eliminated entirely.
The CCCA's supporters push back on this argument. They point out that credit card issuers still collect far more in swipe fees than they pay out in rewards, and that banks in Europe and Australia maintained rewards programs even after similar reforms took effect in those countries.
A CMSPI study cited by reform advocates estimated that rewards would be reduced by less than one-tenth of 1% "at most," and that banks have more than enough margin to continue funding rewards even if swipe fee revenue declines.
The honest answer? Nobody knows for certain what will happen. What is clear is that the issue is live, politically active, and being watched closely by financial institutions, advocacy groups, and cardholders alike.
What Could Change for Your Organization
For churches, schools, and nonprofits that depend on credit cards for day-to-day operations, here are the specific areas worth watching.
Cash Back and Points Earning Rates
If banks reduce rewards to compensate for lower interchange income, the most likely first change would be a reduction in earning rates. Cards that currently offer 2% or 3% cash back on purchases might drop to 1% or rewards categories could be narrowed.
For organizations using credit cards as a budgeting and purchasing tool, this could mean less return on the spending you're already doing.
Airline and Hotel Loyalty Partnerships
Many co-branded credit cards (the kind that earn miles or points with a specific airline or hotel chain) are funded in part by the interchange fees generated when cardholders use those cards. If those revenue streams shrink, credit card issuers may reduce their partnerships with loyalty programs, devalue points, or restructure their reward redemption options.
For organizations where staff travel for conferences, missions, or donor relations, this could affect how much value you get from your travel spending.
Card Perks and Ancillary Benefits
Beyond points and cash back, many business and nonprofit cards come with perks like travel protections, purchase protections, extended warranties, and access to expense management tools. There's also concern that issuers could reduce these ancillary benefits to manage costs if the bill passes.
Card Availability and Qualification
Some analysts have noted that if credit card programs become less profitable, issuers may tighten their underwriting standards, making it harder for smaller organizations and nonprofits to qualify for cards that currently require only basic business documentation or an EIN.
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What Should Your Organization Do Right Now?
Whether or not the Credit Card Competition Act passes, the current debate is a useful prompt for any church or nonprofit to take a closer look at how they're using credit cards and what they're actually getting from them.
Here are a few practical steps to take now.
Audit Your Card's Rewards Against Your Actual Spending
Many organizations are on cards that offer high rewards in categories they rarely use. If you're earning elevated cash back on travel but most of your spending is on supplies and vendor payments, you're leaving value on the table, and you'd barely notice a reduction in travel rewards.
Look at your spending patterns for the past 6 to 12 months and make sure your card's reward structure actually aligns with where your money goes.
Prioritize Control and Visibility Over Rewards
Here's the bigger picture: for most churches and nonprofits, the value of credit card rewards is real but it's secondary to the value of having control over your budget.
If someone on your team overspends by $500 because your card has no spending limits, no virtual card controls, and no real-time tracking, that $500 error erases months of rewards accumulation in a single transaction.
A card built around budget controls, real-time visibility, and automated receipt tracking (like KleerCard) protects your ministry from financial mismanagement regardless of what happens to rewards programs at the national level.
Don't Overhaul Your Setup Based on Speculation
The Credit Card Competition Act has been reintroduced multiple times without passing. Even with renewed political momentum in 2026, it faces a long road through Congress, and any impacts on rewards programs would likely be gradual, not overnight.
That said, staying informed is smart. If you're evaluating a new card or renegotiating your current setup, factor in that rewards rates may become less reliable over time, and weight control and flexibility more heavily.
What Makes KleerCard Different (Regardless of What Congress Does)
KleerCard was designed for mission-driven organizations from the start. It was built around something the big rewards cards have never prioritized: real control.
With KleerCard, you can:
- Issue single-use virtual cards for specific events, ministries, or purchases — and automatically deactivate them when they're no longer needed
- Assign recurring monthly budgets to departments or individuals, so spending never exceeds what you've authorized
- Set merchant category restrictions, so a card issued for groceries can't be used at a gas station
- View every transaction in real time, across your entire organization
- Automate receipt collection so staff snap a photo of the receipt the moment they make a purchase (no more chasing paper trails at month's end)
- Integrate directly with accounting tools like QuickBooks so your books stay current without extra manual work
KleerCard doesn't offer cash back, and that's by design. No card that prioritizes rewards has ever been able to offer the same level of granular spending control. For churches and nonprofits, where every dollar has a designated purpose and accountability to your board, donors, or congregation, control isn't just a nice feature, it's a fiduciary responsibility.
The Credit Card Competition Act or not, that responsibility doesn't change.
The Bottom Line
The Credit Card Competition Act represents a genuine and ongoing debate about how credit card fees are structured in America, and its outcome could have real implications for the rewards programs that millions of organizations rely on.
For now, it's a story worth following, not a reason to panic.
But it is a good reminder that building your financial systems around credit card rewards is a fragile strategy. Rewards programs are marketing tools that banks can adjust or eliminate at any time, regardless of legislation. The organizations that manage their finances most effectively are the ones who have strong controls, real-time visibility, and accountability built into every transaction.
That's what KleerCard is built to provide.
If you want to explore what a smarter spending system looks like for your church or nonprofit (one that doesn't depend on swipe fees or reward structures to protect your budget) click here to apply for KleerCard today.
Frequently Asked Questions
What is the Credit Card Competition Act?
The Credit Card Competition Act is a bipartisan bill that would require large banks to offer at least two competing payment networks on their credit cards, giving merchants more choice in how transactions are processed. Its supporters say it will reduce swipe fees; critics worry it could reduce credit card rewards.
Has the Credit Card Competition Act passed?
As of early 2026, the Credit Card Competition Act has not passed. It has been reintroduced multiple times since 2022 and the bill has recently received renewed attention as lawmakers debate card fee regulation.
Will the Credit Card Competition Act eliminate credit card rewards?
It's unclear. Opponents of the bill argue that reduced interchange revenue would lead banks to cut rewards programs, pointing to the Durbin Amendment as a precedent. Supporters argue that banks have more than enough margin to maintain rewards even if swipe fees decline modestly. Real-world results would likely depend on how the legislation is written and how banks respond.
How does KleerCard handle rewards?
KleerCard does not offer cash back or points rewards. Instead, it's built around budget controls, virtual card management, automated receipt tracking, and real-time spending visibility features designed specifically for churches, nonprofits, and mission-driven organizations.
How can my organization apply for KleerCard?
You can begin your application at getkleercard.com/sign-up. Setup takes only minutes, and most organizations are up and running within a few hours.
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