Credit card giants face swipe fee backlash

Visa and Mastercard are facing scrutiny over their swipe fees, which critics argue inflate costs for businesses and consumers. During a Senate Judiciary Committee hearing this week, lawmakers discussed the Credit Card Competition Act, aimed at providing retailers with alternative payment network options. Sen. Roger Marshall (R-KS) stated: “When those go up, consumers ultimately pay the price.” Visa and Mastercard executives defended their practices, claiming that competition is robust and that their fees are not set to disadvantage consumers. However, many lawmakers, including Sen. Lindsey Graham (R-SC), expressed skepticism about the fairness of these fees, noting that they are higher in the U.S. than in other countries. The Department of Justice has also filed an antitrust lawsuit against Visa, alleging it has stifled competition in the payment network market. Industry groups are calling for congressional intervention to address the issue, which they believe is contributing to inflation and harming small businesses.