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The Credit Card Competition Act would open the doors for competitors and drive down credit card fees

WASHINGTON, DC — Today, government watchdog Accountable.US released a new report revealing that credit card industry trade groups, along with Visa and Mastercard, spent a combined $21 million in the first half of 2024 lobbying against increased competition in the industry. This follows a 2023 Accountable.US analysis which showed that the same coalition had already spent $51 million opposing the Credit Card Competition Act, bringing the total lobbying spend to $80 million.

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Visa, Mastercard, and their army of corporate lobbyists have spent millions to try and convince Congress that increased competition is a bad thing for consumers. Despite their claims, it’s a lack of competition that’s burdening small business owners and their customers with sky-high swipe fees. Swipe fees are a hundred billion dollar drain on our wallets, and it’s time Congress put its foot down against anti-competitive credit card companies.”

Liz Zelnick, Director of Accountable.US’ Economic Security & Corporate Power Program

The bipartisan Credit Card Competition Act (S. 1838, H.R. 3881) led by Senator Dick Durbin (D-IL) and Rep. Lance Gooden (R-TX) would require banks issuing credit cards to support multiple payment networks, fostering competition that will lower swipe fees, improve security, and provide additional benefits for consumers and small businesses alike. As it stands now, the Visa-Mastercard duopoly allows the companies to impose exorbitant swipe fees—ten times higher than those in Europe—that have more than doubled over the last decade. Merchants are unable to negotiate these rates and are forced to accept the fees set by the two companies, which are then passed on to consumers. 

Yesterday, the Justice Department filed an antitrust lawsuit against Visa for “illegally monopolizing” the debit card market. The suit alleges that the company’s monopoly power has allowed it to impose unfair fees and price hikes on its customers, echoing concerns raised by proponents of the Credit Card Competition Act.

“This lawsuit is a reminder why Congress must act to give federal regulators more tools to ensure a fairer marketplace overall by passing the Credit Card Competition Act,” added Zelnick. “Lack of competition under the Visa-Mastercard duopoly—both on the credit and debit side—is why business owners are burdened with record high swipe fees that get passed onto consumers, jacking up costs on everything from gas to groceries even for families who pay in cash.” 

Visit lowercreditcardfees.com for more information on the Credit Card Competition Act. 

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