According to Cointelegraph, consumer watchdog organization Accountable.US has published a report accusing finance giants Visa and Mastercard of operating as a duopoly to stifle competition in the debit and credit card payments sector. The report claims that the two companies have spent over $80 million lobbying against legislation that would allow competitors access to the payments market.
Accountable.US alleges that Visa and Mastercard, which dominate the majority of credit and debit card transactions in the United States, are responsible for the high swipe fees faced by both consumers and businesses. Liz Zelnick, director of Accountable.USâ economic security and corporate power program, stated that the lack of competition is burdening small business owners and their customers with exorbitant swipe fees. She emphasized that these fees are a significant financial drain and called for Congress to take action against anti-competitive credit card companies.
The report also references the US Department of Justiceâs recent antitrust suit against Visa, which alleges that Visa engaged in practices to dissuade institutions from partnering with competing payment service providers. Zelnick highlighted that this lawsuit underscores the need for Congress to provide federal regulators with more tools to ensure a fair marketplace, advocating for the passage of the Credit Card Competition Act.
The Credit Card Competition Act of 2023, introduced by US Senators Dick Durbin and Lance Gooden, aims to address these issues. The bipartisan legislation is also supported by current Republican vice presidential candidate J.D. Vance. However, the Senate has yet to schedule a date for discussion or a vote on the bill.
