From CNBC: 2024-11-19 17:42:03

The Senate Judiciary Committee held a hearing on the Visa-Mastercard “duopoly,” with bipartisan support to tackle interchange fees. Visa and Mastercard control 80% of the market, charging over $100 billion in fees in 2023. A proposed bipartisan Credit Card Competition Act aims to increase competition and offer lower-cost alternatives to small businesses.

Visa and Mastercard defend their swipe fees as necessary for security and services provided. They oppose the Credit Card Competition Act, warning against consumer control loss and reduced competition. The National Retail Federation supports the act, highlighting how high swipe fees lead to higher prices for consumers.

Consumers spent an average of $1,100 on swipe fees in 2023, more than on pets, coffee, or alcohol. Visa and Mastercard’s $30 billion settlement to reduce swipe fees was rejected by a federal judge in June. Visa faces a lawsuit from the Justice Department for allegedly maintaining a monopoly on debit card payment networks, impacting prices.

Read more: Visa & Mastercard execs grilled by senators on high swipe fees