WASHINGTON, D.C. (WMBD) — Sen. Dick Durbin (D-Ill) is going after major credit card companies in new bipartisan legislation targeting swipe fees.
The Credit Card Competition Act of 2023 will enhance competition and choice in the credit card network market by requiring credit card companies to offer at least two networks for transaction processing.
“The bill says we’re going to break the monopolies that Visa and MasterCard have. They control 83 percent of the credit card markets and they decide how much the retailers are going to add to your bill,” said Durbin.
By reigning in Visa and MasterCard, Durbin said the legislation will give more more power to small businesses and consumers.
“Most consumers don’t know what a swipe fee is…and what it boils down to is a secret expense that is added to all of your purchases when you use credit cards…So we’re gonna put competition into this. They hate it like the devil hates holy water. But competition is is integral part of the free market system,” he said.
According to the National Retail Federation, credit card swipe fees average at about two percent, but can be as high as four percent for premium reward cards.
The Credit Card Competition Act of 2023 builds on a similar legislation passed in 2010 that reduced debit card swipe fees, Durbin said.