H.R. 7035 — Credit Card Competition Act of 2026

This section amends sec. 921(b) of the Electronic Fund Transfer Act to require the Board of Governors of the Federal Reserve System, not later than one year after enactment, to prescribe regulations prohibiting covered card issuers (i.e., card issuers with affiliates having more than $100 billion in assets) and payment card networks from (1) restricting electronic credit transactions on their credit cards to one network; two or more networks if owned or operated by affiliates or listed for national security risks; or, subject to periodic review, the two largest networks by U.S. credit card market share (with determinations every three years and nullification if they change); (2) inhibiting merchants' ability to route such transactions over any eligible network, requiring network-exclusive authentication or security technology, or inhibiting other networks' use of compatible technology; or (3) penalizing merchants for routing choices or transaction volumes. The Board must also, in consultation with the Treasury Secretary, establish and update biennially a public list of payment card networks posing U.S. national security risks or owned, operated, or sponsored by foreign state entities. These requirements do not apply to credit cards issued in three-party payment systems (i.e., where the issuer is also the network or under common ownership).