According to Cointelegraph, the consumer watchdog group Accountable.US released a report accusing Visa and Mastercard of monopolizing the debit and credit card payment market and hindering competition. The report said that the two companies spent more than $80 million lobbying against legislation that would allow competitors to enter the payment market.
Accountable.US noted that Visa and Mastercard account for the majority of credit and debit card transactions in the U.S., resulting in high card swipe fees for consumers and businesses. Liz Zelnick, director of the Economic Security and Business Power Project at Accountable.US, said the lack of competition places a heavy burden on small businesses and consumers.
Zelnick believes that Visa and Mastercard's monopoly has led to higher costs for American consumers in everything from gasoline to groceries, even for households that pay with cash. The report also mentioned the U.S. Department of Justice's recent antitrust lawsuit against Visa, accusing Visa of using incentives to prevent institutions from working with competing payment service providers.
Zelnick called on Congress to pass the Credit Card Competition Act, which would give federal regulators more tools to ensure a fair market. The bill was introduced by Senators Dick Durbin and Lance Gooden and supported by Vice Presidential candidate J.D. Vance. The Senate has not yet set a date for discussion or a vote.
