Congress is putting major credit card processors on notice. This year, it reintroduced legislation called the Credit Card Competition Act, which aims to break up the credit card duopoly between (NYSE: V) and Mastercard (NYSE: MA), and mandate that all large banks allow electronic credit transactions to be processed over at least two networks.

According to one of the bill's sponsors, the legislation would "enhance credit card competition" and "reduce excessive credit card fees." Here's what investors need to know about this hotly debated bill.

According to the Merchants Payment Coalition, the average credit card processing fee in the U.S. is around 2.24%. These fees, also known as "swipe fees," are paid to the credit card's issuing bank, the payments network, and the payments processor. Legislators have set their sights on these fees, which they say place an unfair burden on retailers and consumers.

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Source Fool.com