Retailers to Senators: Protect U.S. Businesses Not Wall St.

It’s time to pass the Credit Card Competition Act

By [ Austen Jensen ]
09/18/2023

WASHINGTON, DC – Austen Jensen, Retail Industry Leaders Association executive vice president, government affairs, issued the following statement urging senators to vote and pass the Credit Card Competition Act now:

“The payments market is broken. Congress needs to step in to stop Visa, Mastercard and Wall Street banks from continuing to gouge American businesses that accept credit cards. These companies charge American businesses five times what they charge European and Asian businesses, for no reason other than, they can. And they will keep raising swipe fees and fleecing American businesses and families until Congress acts. The Senate has that opportunity this week.

“The Credit Card Competition Act addresses the duopoly controlled by Visa and Mastercard and will inject more competition into the credit card market. Retailers implore Senate leadership to bring this bill to the floor and urge all Senators to pass it. It’s time to tell Visa and Mastercard the relentless swipe fee increases game must end.”

FACT: Per Nilson Report, in 2022, U.S. merchants paid a record $160 billion in swipe fees. This represents a 16.7% increase in fees from 2021.
FACT: Despite the pandemic and inflationary pressures, swipe fees continue to rise. The average rate of YoY costs rose from 7% between 2013 and 2020, to 21% afterwards. And they plan to increase costs again this October. Initial estimates suggest card fee hikes could cost U.S. retailers over $500 million
FACT: American merchants—retailers, restaurants, contractors and anyone that accept credit cards—pay five times more in swipe fees for the exact same transaction than VISA and Mastercard charge businesses in other countries.

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RILA is the US trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate.

RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $2.7 trillion in annual sales, millions of American jobs, and hundreds of thousands of stores, manufacturing facilities, and distribution centers domestically and abroad.