The current credit card system is dominated by a few major credit card networks, leading to high processing fees for merchants. The Credit Card Competition Act would create a more level playing field in the payment industry, promoting transparency, competition, and innovation. Congress must act quickly to inject much-needed competition into the credit card market and require that the two dominant networks compete for both issuing bank and merchant business. Here’s why:
- U.S. merchants were charged an all-time record of $160.7 Billion to process credit and debit card transactions in 2022. These fees have more than doubled over the past decade and soared 16.7% last year.
- Visa and Mastercard control 80% of the credit card market and refuse to negotiate these fees with Main Street merchants.
- As a percentage of the transaction, the amount collected in swipe fees automatically goes up as prices rise. While Main Street businesses and U.S. consumers struggle with inflation and pay the highest swipe fees in the industrialized world, Visa has bragged on its earnings calls about being a beneficiary of inflation.
Please call your Senator today at 202-224-3121 and ask them to support the Credit Card Competition Act.
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