Pass Swipe Fee Reform: Prove Wall St. Doesn’t Own Washington

By [ Austen Jensen ]
05/19/2025

The little sign on the cash register at your favorite coffee shop or corner store has become a fixture: Credit card fee to be added to all purchases.

Retailers, restaurants and other merchants never want to charge their customers more, but the duopoly that is Visa and Mastercard have boxed them in. As cash and checks become less common and card payments dominate, these increasing fees are forcing merchants to pass the costs onto their customers.

One may ask, why don’t businesses simply negotiate to try and lower their card acceptance costs? The answer is they can’t. Even the largest of retailers are unable to leverage their size to effectively negotiate with Visa and Mastercard. That’s because Visa and Mastercard have absolute control of the market, giving them the ability to tell merchants to accept their cards at the price and terms they establish. Without competition, businesses big and small are stuck paying whatever toll Wall Street sets without any ability to negotiate.

It’s time for Congress and the Trump administration to step in and protect consumers by creating a competitive playing field. Legislation aimed at curbing anti-competitive business practices, removing barriers to innovation, and giving retailers the ability to enhance the customer experience — all without being handcuffed by the power of Visa and Mastercard — needs to be a priority. Thankfully, both Republicans and Democrats are backing the Credit Card Competition Act to ensure competition in the credit card market really works for American consumers.

A lot of money is at stake, so industry groups representing the largest banks and card networks are spending mightily to protect their duopoly. But consider the simple facts. In 2024, these fees for credit and debit cards hit a staggering $187.2 billion (111 billion for Visa and Mastercard credit), up from $172 billion in 2023 (101 billion for Visa and Mastercard credit), according to the Nilson Report. That’s more than a 10% jump in just one year and almost triple what they were back in 2014, when the total was $39.1 billion. These numbers are astronomical, and they speak for themselves.

Competition is at the heart of the American economy — it sparks innovation and gives consumers better prices, products and services. But when it comes to payments, a lack of competition is weighing everyone down. Merchants and consumers alike are feeling the pinch from ever-rising swipe fees. Competition isn’t just about the fees, its about innovation and ingenuity, two bedrocks of the American system that our current payment arena lacks.

Addressing the lack of competition must be a key focus on Capitol Hill. It’s a rare opportunity for bipartisanship. Passing the Credit Card Competition Act (CCCA) would be a big win for consumers and Main Street businesses across the country, and send a powerful message that Wall Street doesn’t own Washington.