Unchecked fees driven by a lack of competition undermine affordability for independent restaurants and bars, and consumers across the country
Washington, D.C. (January, 13, 2026) – The Independent Restaurant Coalition (IRC) urges Congress to pass the Credit Card Competition Act to address the out of control costs imposed by the credit card industry and is grateful for the President’'s endorsement of the bill today. Independent restaurants and bars are burdened by swipe fees set in a market with little competition, driving up costs that undermine affordability for restaurants and the customers they serve. Introduced by Senators Roger Marshall (R-KS) and Dick Durbin (D-IL), the Credit Card Competition Act would introduce competition and transparency into the payment processing market, lower fees for merchants, and provide meaningful relief to small businesses and consumers without limiting their access to credit or undermining fraud protections.
In 2024, U.S. businesses paid $236 billion in swipe fees, and those costs continue to climb. Merchants typically pay between 1.5% and 3.5% of each sale in processing fees, but those rates can be significantly higher when customers use reward or premium credit cards. For independent restaurants, which often do not have the scale or leverage to negotiate lower rates, these fees are one of the largest unavoidable operating costs they face, reducing revenue that could otherwise go to paying employees, purchasing food and supplies, or keeping prices affordable for their guests.
For most operators, credit card processing fees are among their top expenses and are almost as high as rent. Every dollar spent on swipe fees is a dollar that is not applied toward their teams, ingredients, or keeping meals affordable for customers. By passing the Credit Card Competition Act, Congress has the chance to finally bring competition and fairness to the market, delivering real relief for restaurants and the people and communities who depend on them.
These costs persist because the credit card market lacks meaningful competition. Visa and Mastercard control roughly 80% of credit card transactions in the United States, allowing them to dictate pricing and terms with little transparency or accountability. Independent restaurants, unlike large chains, lack the leverage to secure lower rates, and are often stuck absorbing elevated costs for reward cards that benefit consumers but offer no way for small businesses to reduce what they pay at the point of sale.
Efforts to rein in excessive credit card costs reflects growing recognition that the current system is broken. But lasting relief for independent restaurants will require structural reform that restores competition and transparency to the payment processing market. That is why the Independent Restaurant Coalition continues to urge Congress to pass the Credit Card Competition Act. By requiring transactions to be routed over more than one unaffiliated network, the bill would introduce real competition, reduce fees, and give merchants the ability to choose lower-cost options without limiting consumer access to credit or undermining fraud protections.
“Swipe fees quietly drain revenue from independent restaurants and bars every single day, in a system where small businesses have no ability to negotiate, no transparency into pricing, and no meaningful choice,” says Erika Polmar, executive director of the Independent Restaurant Coalition. “Those costs undermine affordability, pulling resources that should be going to workers, reinvestment, and keeping prices reasonable for customers. Introducing real competition into the credit card market isn’t radical, it's long overdue, and it’s essential for the survival of independent restaurants and bars.”
Independent restaurants sit at the center of a much larger economic ecosystem but they are being squeezed from every direction. Rising rents, opaque commission rates from third party delivery platforms, escalating health and business insurance costs and unchecked credit card swipe fees all threaten their ability to survive and remain affordable. Farmers and food producers, beer, wine, and spirits distributors, linen and cleaning services, technology vendors, and countless other companies and local communities all depend on restaurants to stay in business. When independent restaurants and bars fail the consequences ripple through local economies and supply chains nationwide. The Independent Restaurant Coalition is working diligently to ensure restaurants have a fair and competitive marketplace, because the strength of this broader economy depends on their success.
About the Independent Restaurant Coalition
Formed in March 2020, the Independent Restaurant Coalition (IRC) fights to ensure independent restaurants and bars are seen, heard, and supported by federal policymakers. From saving local businesses during the COVID-19 pandemic to advancing long-term policy solutions, the IRC advocates for the success of independent restaurants, bars, and their communities nationwide.
# # #