The 2024 election cycle is finally behind us, and lawmakers can now focus on something revolutionary: actually, doing their jobs. With the economy and inflation dominating the conversation, Congress has a clear mandate during this lame-duck session — tackle consumer costs. And they’ve got a golden opportunity to do just that with bipartisan legislation targeting the unchecked power of credit card giants like Visa and Mastercard.
Let’s not sugarcoat this: Visa and Mastercard control nearly 75% of the credit card market. This monopoly-like grip lets them impose outrageous “swipe fees” on small businesses — a tax they’re forced to pay every time a customer uses a credit card. Originally meant to cover transaction processing costs, these fees now serve as little more than a cash grab. Thanks to technological advancements, processing costs have plummeted, but swipe fees? They just keep climbing.
In 2023 alone, Visa and Mastercard drained $135 billion from businesses, a staggering $10 billion more than the year before. For many small businesses, these fees are their second-highest expense after labor. And don’t think consumers get off scot-free. Those higher costs get passed along, with Americans forking over an extra $1,102 last year because of these fees.
The U.S. Department of Justice has had enough, filing an antitrust lawsuit against Visa for monopolizing the debit card market. Meanwhile, Congress has the chance to take meaningful action with the Credit Card Competition Act. This bipartisan bill, co-sponsored by soon-to-be Vice President J.D. Vance, requires big banks to add a second processing network to their credit cards. The result? Real competition, lower swipe fees, and $16 billion in annual savings for businesses and consumers.
Competition drives innovation and keeps costs low. Monopoly power? It crushes both. If Congress wants to prove they care about hardworking Americans, passing the Credit Card Competition Act is the way to do it. Let’s see if they’re up to the task.
