US HB7035

Federal Reserve must issue regulations within 1 year requiring credit cards from large issuers (over $100 billion in assets) to be enabled on at least two unaffiliated payment card networks, breaking exclusive network arrangements

Merchants gain the right to route credit card transactions over any eligible network enabled on the card, and issuers/networks cannot impose penalties or require exclusive use of specific authentication or tokenization technologies

The two largest payment card networks by U.S. market share (currently Visa and Mastercard) cannot both serve as the required network options on the same card

Federal Reserve must establish and update every 2 years a public list of payment card networks that pose national security risks or are owned/operated by foreign state entities, which would be excluded from routing options

Exempts credit cards issued in 3-party payment system models (where the issuer is also the network, such as American Express); regulations take effect 180 days after final rules are prescribed