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Started By
Message
Trump Is Right: Congress Should Pass Credit Card Competition Act
Posted on 4/3/26 at 6:15 am
Posted on 4/3/26 at 6:15 am
quote:
Trump Is Right: Congress Should Pass Credit Card Competition Act
By Randi Thompson
April 02, 2026
... The president’s support shows he is critically aware of the damage done by exorbitant credit card swipe fees as they drive up the price of nearly all goods and services.
That’s because swipe fees are charged as a percentage of a total transaction amount, averaging about 2.35% and quickly climbing. Since 2010 the amount of swipe fees paid has more than quadrupled and, after labor costs, swipe fees are commonly cited as business owners’ second highest operating expense.
...
Fortunately, President Trump, along with an overwhelming majority of Americans and a bipartisan coalition in Congress, have had enough. The CCCA would finally break the iron grip these two companies have held on the market by allowing merchants to choose from at least two different networks when processing a credit card transaction. This simple change would mean alternatives like Shazam and Pulse, already operating secure and efficient networks in the debit space, would have the ability to compete. A truly competitive industry would encourage Visa and Mastercard to lower their rates to a reasonable level and improve their services in order to maintain an edge.
...
Very few pieces of legislation can bring together Democratic lawmakers like Sens. Dick Durbin and Peter Welch and Rep. Zoe Lofgren with Republican lawmakers like Sen. Roger Marshall, Rep. Lance Gooden, and President Trump. When we achieve rare moments of bipartisan consensus, that alone should be all the evidence Congress needs to pass the CCCA and send it to President Trump’s desk for his signature.
LINK
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Posted on 4/3/26 at 6:19 am to NC_Tigah
Lobbyists from the CC biz will be along to line some pockets and kill this.
Posted on 4/3/26 at 6:24 am to NC_Tigah
I fear competition is too late, regulation is the only thing fixing swipe fees.
Posted on 4/3/26 at 6:44 am to NC_Tigah
quote:
The CCCA would finally break the iron grip these two companies have held on the market
Yeah. We definitely have free markets
Posted on 4/3/26 at 6:54 am to NC_Tigah
I work in the industry. Something doesn't quite jive with the math of 2.35% and quadrupling since 2010.
Is this suggesting that the nominal rate in 2010 was 59 basis points? Because it certainly was not.
2.35% on uninflated items is less than 2.35% after inflation over the last 10 years. 2.35% seems to remain relatively unchanged over time.
I would say the move away from cash en masse over the last 16 years is a bigger detriment to the businesses, but CC fees are not necessarily increasing, just more volume is being funneled into the processing side and away from ACH/Cash/Check.
Certainly not defending the industry because there are many shady practices to be unearthed, but there is a lot of non detailed information being used to incite rage.
Also, if Dick Durbin is in agreement with something Trump wants, Trump might want to reconsider. The Durbin amendment introduced around 10 or 12 years ago only complicated processing statements. It didn't reduce costs by any measure. . .
Is this suggesting that the nominal rate in 2010 was 59 basis points? Because it certainly was not.
2.35% on uninflated items is less than 2.35% after inflation over the last 10 years. 2.35% seems to remain relatively unchanged over time.
I would say the move away from cash en masse over the last 16 years is a bigger detriment to the businesses, but CC fees are not necessarily increasing, just more volume is being funneled into the processing side and away from ACH/Cash/Check.
Certainly not defending the industry because there are many shady practices to be unearthed, but there is a lot of non detailed information being used to incite rage.
Also, if Dick Durbin is in agreement with something Trump wants, Trump might want to reconsider. The Durbin amendment introduced around 10 or 12 years ago only complicated processing statements. It didn't reduce costs by any measure. . .
Posted on 4/3/26 at 6:58 am to NC_Tigah
Funny thing is that on SiriusXM's Patriot Channel, there are ads against this act. The ads don't give any details other than "Trump's greatest enemy Dick Durbin" is a sponsor...
Posted on 4/3/26 at 6:59 am to NC_Tigah
crypto settlements are coming
Posted on 4/3/26 at 8:04 am to WhiskeyThrottle
quote:
Is this suggesting that the nominal rate in 2010 was 59 basis points? Because it certainly was not. 2.35% on uninflated items is less than 2.35% after inflation over the last 10 years. 2.35% seems to remain relatively unchanged over time.
I’d suggest you reread that. It said the amount of swipe fees has quadrupled. It wasn’t talking about the percentage
Posted on 4/3/26 at 8:05 am to NC_Tigah
Yeah they have a monopoly. And we should break up all monopolies. A few decades ago the powers that be just decided to not enforce such laws. It hasn't worked out well for consumers.
Posted on 4/3/26 at 8:07 am to NC_Tigah
All credit card interest should cap out at 15% APR.
If you can't loan to a pool of customers you can't cover for at that amount, you have no business loaning to them and they have no business buying on credit.
If you can't loan to a pool of customers you can't cover for at that amount, you have no business loaning to them and they have no business buying on credit.
Posted on 4/3/26 at 8:09 am to NC_Tigah
Same admin that slashed CFPB supervision and enforcement division staff by 80%, cut the budget in half, and removed rules and guidance on CC related fees.
Posted on 4/3/26 at 8:17 am to MsState of mind
quote:
I’d suggest you reread that. It said the amount of swipe fees has quadrupled.
It did, transitioning seamlessly from rate to amount. That's not an accident, he's pushing an agenda.
Posted on 4/3/26 at 8:21 am to NC_Tigah
Agree. I have added charges for credit card use. It was becoming one of our biggest expenses, and with stagnate and decreasing reimbursements, escalating overhead and ever shrinking margins, it was time and IDGAF if people like it or not. You're paying those mf'ers 30% interest. You can pay me a few bucks for the convenience. shite ain't free.
Posted on 4/3/26 at 8:26 am to MsState of mind
So, the rate has remained roughly the same, but the government has only encouraged business to put more of their business on plastic? How is this the fault of the card brands?
If want businesses to pay less in fees. . . perhaps encourage cash payment?
The proposed problem isn't logical.
Again, I'm not necessarily supporting the fees. Businesses can't really regulate what card is presented, and certain cards carry inherently higher interchange. That's driven by the banks issuing cards that have benefits attached that are in part or maybe even wholly paid by the interchange.
Behind that 2.35% is an incredible amount of infrastructure. If you removed the layers of frivolous interchange expense, you'd still be somewhere in the 1% to 1.5% merchant expense. The most you'd reduce the rate to the merchant by is 1%.
Lastly, the dumbass durbin amendment (government solution) last time around did absolutely 0 to move the interchange expense. It did reduce interchange expense on certain cards, but Visa introduced a new flat rate per merchant charge to offset the revenue, and MasterCard introduced a "Network and Brand Usage" fee that was the most convoluted moving target on what the merchants are charged. In essence, the "government solution" did nothing to reduce expense. And that is the game they will play in perpetuity until they decide to encourage cash or non card branded payments. That's how you reduce the expense. Not introduce legislation that isn't going to move the needle any.
If want businesses to pay less in fees. . . perhaps encourage cash payment?
The proposed problem isn't logical.
Again, I'm not necessarily supporting the fees. Businesses can't really regulate what card is presented, and certain cards carry inherently higher interchange. That's driven by the banks issuing cards that have benefits attached that are in part or maybe even wholly paid by the interchange.
Behind that 2.35% is an incredible amount of infrastructure. If you removed the layers of frivolous interchange expense, you'd still be somewhere in the 1% to 1.5% merchant expense. The most you'd reduce the rate to the merchant by is 1%.
Lastly, the dumbass durbin amendment (government solution) last time around did absolutely 0 to move the interchange expense. It did reduce interchange expense on certain cards, but Visa introduced a new flat rate per merchant charge to offset the revenue, and MasterCard introduced a "Network and Brand Usage" fee that was the most convoluted moving target on what the merchants are charged. In essence, the "government solution" did nothing to reduce expense. And that is the game they will play in perpetuity until they decide to encourage cash or non card branded payments. That's how you reduce the expense. Not introduce legislation that isn't going to move the needle any.
Posted on 4/3/26 at 8:27 am to NC_Tigah
"Pay your bills. You agreed to the fees."
Am I doing it right?
Am I doing it right?
Posted on 4/3/26 at 8:28 am to NC_Tigah
How about retail establishments that either charge a fee to swipe your card or charge you less if cash is used getting slammed or fined for such activity?
Posted on 4/3/26 at 8:32 am to WhiskeyThrottle
quote:
If want businesses to pay less in fees. . . perhaps encourage cash payment?
With everything automated from the unmanned CVS checkouts to parking garages the option to pay cash are not always present.
Posted on 4/3/26 at 8:34 am to NC_Tigah
quote:
The president’s support shows he is critically aware of the damage done by exorbitant credit card swipe fees as they drive up the price of nearly all goods and services.
That’s because swipe fees are charged as a percentage of a total transaction amount, averaging about 2.35% and quickly climbing. Since 2010 the amount of swipe fees paid has more than quadrupled and, after labor costs, swipe fees are commonly cited as business owners’ second highest operating expense.
The scam is right there in the open.
They push you to go cashless, support many businesses that don't even accept cash payment or give change any more, and then charge an extra fee for being cashless.
Posted on 4/3/26 at 8:34 am to SmackoverHawg
quote:
Agree. I have added charges for credit card use. It was becoming one of our biggest expenses, and with stagnate and decreasing reimbursements, escalating overhead and ever shrinking margins, it was time and IDGAF if people like it or not. You're paying those mf'ers 30% interest. You can pay me a few bucks for the convenience. shite ain't free.
This is where the article could move the needle. If a business has a 30% profit margin and credit cards are 3% (for nice and even numbers sake), the card brand is eating 10% of the profit. That's how the argument should be framed. It'd suck if your margin was 10% and you're paying 25% of your profit in fees.
I could make the argument that businesses should be charged an extremely low flat rate, or even be compensated for driving the consumer side of the business. Like you said, the customer is the one deciding to pay using their card.
The only thing merchants should arguably be charged for is check card/debit card because those don't incur an APR from the customer. But again, the customer is choosing to pay with the card.
Posted on 4/3/26 at 8:35 am to NC_Tigah
Why percentage of the charge? Does it not cost the processing company the same to process a $10 charge as a $10K charge?
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