Credit Card Competition Act Gains New Senate Support

Legislative momentum is building for a bill that could significantly lower the swipe fees you pay on every credit card transaction. Three more senators have joined as co-sponsors for the Credit Card Competition Act. This bill targets the dominance of Visa and Mastercard by requiring large banks to offer at least two different networks for processing transactions. One of those networks must be something other than the big two. For your business, this is about cost and choice. Currently, Visa and Mastercard set the fees that banks charge you. By introducing a second, competing network on each card, the bill aims to force those fees down through market competition. Proponents argue this will save U.S. merchants billions of dollars annually. However, the banking industry is fighting back hard. Lenders argue that if these fees are cut, they won't be able to fund the popular rewards and points programs that many consumers rely on to make big-ticket purchases. While the bill still faces a steep climb in Congress, the addition of bipartisan support suggests that swipe fee reform is a top priority for lawmakers. If passed, you could see a direct reduction in your overhead costs for every transaction processed in your store or online.

Source: PYMNTS

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