Walmart, Target Urge Credit Card Bill Support
Saying swipe fees for credit cards in the U.S. are seven times higher than those in Europe, more than 1,600 merchants have reportedly signed a letter urging members of Congress to vote for a bill that would boost competition among credit card networks. The letter — which was organized by the Merchants Payments Coalition — was addressed to all members of Congress, and the retailers that signed it include Walmart and Target, The Wall Street Journal reported Wednesday (Sept.
14). “Swipe fees for credit cards are higher in the United States than anywhere else in the industrialized world — more than seven times as high as Europe,” the letter reads, per the report. “In 2021 alone, U.S. merchants and consumers paid nearly £138 billion in card fees.”
The merchants support a bill introduced in July by Sen. Richard Durbin (D-Ill.) and Sen. Roger Marshall (R-Kan.).
The Credit Card Competition Act of 2022 would require banks that have more than £100 billion in assets and issue credit cards to enable at least two networks to process them, including one network that’s not one of the two largest — Mastercard or Visa, according to a press release issued by Sen. Durbin. Read more: Sen.
Durbin Wants Another Bite at Card Interchange Fees Retailers have said that greater competition among credit card networks would lead to lower swipe fees and, in turn, lower prices for consumers. As PYMNTS reported in May, Visa and Mastercard defended their credit card fees at a Senate hearing, saying the fees are needed to build and maintain a network that is reliable and secure and that competition in the payment industry is fierce, as consumers can use a wide range of payment methods.
Read more: Senate Democrats Grill Visa, Mastercard over Swipe Fees A representative of a group that advocates for card issuers and networks noted that a similar rule was applied to debit cards a decade ago, according to The Wall Street Journal report. “The last time we saw a letter like this, retailers were lobbying for the Durbin amendment windfall they did not pass on to consumers, despite testifying that they would,” Electronic Payments Coalition Board Chairman Jeff Tassey said, per the report.
New PYMNTS Study: How Consumers Use Digital Banks
A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking services, just 9.3% call them their primary bank.
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- ^ Merchants Payments Coalition (merchantspaymentscoalition.com)
- ^ reported (www.wsj.com)
- ^ Credit Card Competition Act of 2022 (www.congress.gov)
- ^ press release (www.durbin.senate.gov)
- ^ Sen.
Durbin Wants Another Bite at Card Interchange Fees(www.pymnts.com)
- ^ Senate Democrats Grill Visa, Mastercard over Swipe Fees (www.pymnts.com)
- ^ Retail Newsletter (www.pymnts.com)
- ^ New PYMNTS Study: How Consumers Use Digital BanksA PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking services, just 9.3% call them their primary bank. (www.pymnts.com)
- ^ Learn More (www.pymnts.com)
- ^ Congress (www.pymnts.com)
- ^ credit cards (www.pymnts.com)
- ^ Legislation (www.pymnts.com)
- ^ MasterCard (www.pymnts.com)
- ^ News (www.pymnts.com)
- ^ regulations (www.pymnts.com)
- ^ Retail (www.pymnts.com)
- ^ Target (www.pymnts.com)
- ^ Visa (www.pymnts.com)
- ^ walmart (www.pymnts.com)
- ^ What’s Hot (www.pymnts.com)