What is the 'Fair Banking Access Act' proposal that would stop banks and credit card companies from arbitrarily regulating games, manga, etc.?

Credit cards are an important payment method for online digital content sales, but payment card networks such as Visa and Mastercard have been pressuring platforms that distribute sexually or violent content to enforce regulations, sparking criticism not only in Japan but also overseas. In light of this trend, the US Internet Preservation Society (USIPS), an organization that advocates for the protection of rights on the internet, has provided an explanation of the proposed Fair Access to Banking Act , which was submitted in February 2025.

Fair Access to Banking | USIPS
https://usips.org/blog/2025/07/fair-access-to-banking/

S.401 - 119th Congress (2025-2026): Fair Access to Banking Act | Congress.gov | Library of Congress
https://www.congress.gov/bill/119th-congress/senate-bill/401

In mid-July 2025, the anti-pornography group Collective Shout criticized payment platforms such as Visa, PayPal, and Mastercard for distributing extreme adult games on Steam and Itch.io. Following this, Steam and Itch.io suddenly removed a large number of adult games from their platforms. However, it was not clear what types of adult games were subject to the restrictions, and gamers have expressed dissatisfaction, saying that if the payment platforms said no, all content would become unavailable.

After Steam removed a large number of adult games, anti-pornography groups declared a 'victory against pedophile gamers,' and 'Gamers Outraged' became a trending topic on Japan's X (formerly Twitter) - GIGAZINE

In Japan, there have been a number of cases in the past where certain credit card brands were no longer accepted on sites like DLSite and FANZA, or where restrictions on certain types of expression were tightened, leading to criticism that this was an infringement of freedom of expression by payment card networks. Furthermore, outside of this case, there have been reports of pressure on porn sites for some time, and criticism that it is the payment card networks that are essentially regulating the adult industry.

It is pointed out that it is not the government or international treaties that actually regulate the adult industry, but 'credit card companies' - GIGAZINE

The 'Fair Access to Banking Act' was introduced in response to criticism of these payment card networks. The USIPS states, 'Payment card networks are becoming the new arbiters of what you can view and buy. The threat of these financial giants shutting down their services has forced major digital stores to remove hundreds of legitimate products, including adult games. This gives a small, unelected cadre of executives immense control over free commerce and expression.'

The Fair Banking Access Act primarily targets large banks and credit unions with total assets exceeding $10 billion (approximately 1.5 trillion yen), as well as payment card networks like Visa and Mastercard. The bill requires these financial institutions to provide financial services on a proportional and equal basis to all people operating within their geographic markets, without discrimination. This prevents the unfair exclusion of certain industries or individuals.

The bill imposes strict conditions on refusal of service. Financial institutions can only refuse service if the individual or business does not meet 'quantitative and fair risk criteria' set in advance by the financial institution. In particular, refusal of service solely on the basis of 'reputational risk' due to political beliefs or controversial business activities is not permitted. Furthermore, when refusing service, financial institutions are required to provide a written explanation of the specific reasons for the refusal.

Furthermore, severe penalties are imposed on financial institutions that violate the law. Banks and credit unions that violate the law may be barred from using the Federal Reserve's discount window lending program and the Automated Clearing House (ACH) network, which is essential for transferring funds between banks. This has a devastating impact on financial institutions' operations, creating a strong incentive for them to comply with the law.

However, the Office of the Comptroller of the Currency (OCC) currently only imposes civil penalties of up to $10,000 (approximately 1.5 million yen) per violation on payment card networks. The USIPS noted that this is not effective, particularly for problematic payment card networks, and is not a sufficient deterrent.

The bill also places emphasis on protecting the rights of victims. Individuals and businesses harmed by banks or credit unions that violate the bill can file civil lawsuits directly in federal district court, without waiting for administrative remedies to be exhausted. If successful, victims can recover reasonable attorneys' fees and costs, plus punitive damages up to three times the amount of damages.

The USIPS believes that the Fair Banking Access Act will have an effective deterrent effect on banks and credit unions. However, it points out that the penalties against payment card networks, which have been at the center of recent issues such as the suspension of online transactions, are too weak, and that the current situation will not be resolved if the bill continues as is. The USIPS argued that stronger measures should be included, such as allowing victims to directly sue payment card networks.