There’s growing momentum among lawmakers to take action against monopolistic credit card companies and banks — namely Visa and Mastercard — who have used their market power to dictate rates at the expense of small business owners and consumers. Visa and Mastercard control 85% of credit and debit card transactions leaving independent businesses and their customers subject to a monopoly tax. In a national survey of small, independent business owners sixty percent said capping credit card swipe fees would be very effective at helping small businesses survive.
The Credit Card Competition Act, introduced in June 2023, is designed to reduce excessive credit card swipe fees, requiring at least two credit card networks be offered to merchants from card-issuing institutions instead of just one, and at least one of those networks must be a network other than the Visa/Mastercard duopoly. Congress must take action by passing the Credit Card Competition Act, but this is a first step.
To learn more, download the Credit Card Swipe Fees Factsheet here.