Press Release: Advocates Push for Credit Card Competition Act to Alleviate Financial Strain on South Carolinians
As South Carolina grapples with one of the highest inflation rates in the nation, voters have made it clear that economic issues are a top priority in the recently concluded elections. To address the financial burdens faced by consumers and businesses alike, advocates are calling on the South Carolina congressional delegation to expedite the passage of the bipartisan Credit Card Competition Act.
Over the past decade, swipe fees charged to merchants by major credit card companies, Visa and Mastercard, have skyrocketed, leading to increased costs for consumers. This duopoly controls over 80% of the payments market, allowing them to impose exorbitant fees without meaningful competition. Reports reveal unsettling practices, such as Visa reportedly threatening PayPal and undermining potential competition from Chase Bank and Apple.
The Credit Card Competition Act, introduced by Senator Dick Durbin and supported by several Republican co-sponsors, aims to inject much-needed competition into this sector. The legislation would ensure merchants have access to at least two different routing networks for credit card transactions, encouraging Visa and Mastercard to lower their fees and improve their services or risk losing business to competitors.
With this change, consumers would benefit from more affordable prices, as lower swipe fees would help businesses manage costs without passing them on to shoppers. Currently, average Americans are estimated to have paid an additional $1,100 last year due to these excessive fees. Furthermore, the act would protect financial security by eliminating access to foreign threat networks like China-owned UnionPay.
As Congress reconvenes, advocates urge lawmakers to respond to voters’ concerns by prioritizing the Credit Card Competition Act, a measure poised to bolster South Carolina’s economy and protect its residents against rising costs.
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