Trump signs executive order targeting banking industry discrimination

President Donald Trump signed an executive order on August 7, 2025, targeting what he characterized as discriminatory banking practices, drawing support from merchants who have long criticized the financial industry’s treatment of small businesses and emerging payment technologies. The order specifically addresses concerns about banks restricting services based on political or religious beliefs while highlighting broader issues within the payment processing ecosystem.

According to the executive order, “Financial institutions have engaged in unacceptable practices to restrict access to financial services on the basis of political or religious beliefs or lawful business practices.” The measure establishes a 180-day timeline for federal banking regulators to eliminate reputation risk considerations that could lead to discriminatory account closures or service restrictions.

The Merchants Payments Coalition welcomed the announcement, with member Doug Kantor from the National Association of Convenience Stores stating that “Big banks and credit card companies not only discriminate against conservatives, they mistreat new financial technology companies, cryptocurrency businesses and Main Street businesses.” Kantor emphasized how these practices inflate prices while preventing innovation, particularly harming small businesses and consumers who can least afford the impact.

Payment Network Market Concentration

The executive order arrives amid ongoing concerns about payment network concentration. According to the Merchants Payments Coalition, Visa and Mastercard control 80% of the market while blocking competition from smaller networks including NYCE, Star and Shazam. This concentration has enabled significant fee increases, with credit card swipe fees more than quadrupling since 2010 to reach $111.2 billion last year alone.

Total credit and debit card swipe fees hit a record $187.2 billion in 2024, making these charges the highest operating cost for most merchants after labor expenses. The coalition estimates these fees drive up prices by nearly $1,200 annually for the average American family.

The regulatory framework outlined in Trump’s order requires the Small Business Administration to identify and contact businesses that were previously denied services through discriminatory practices. Financial institutions have 120 days to restore access to qualifying clients who were affected by…