100s of Merchants Support Credit Card Competition Act
by David Klemt
Perhaps at least somewhat unsurprisingly, support for the Credit Card Competition Act is growing rapidly among merchants.
In fact, 1,802 merchants are making their position on the bill clear. Those hundreds of merchants drafted, signed, and sent a letter to the House and Senate.
The crux of that letter? To tell our lawmakers to support and pass the Credit Card Competition Act.
To view the letter, sent by the Merchants Payments Coalition (MPC), please click here. For the bill and its status, follow this link.
The Credit Card Competition Act: A Quick Summary
According to the MPC, credit and debit card transactions just in the US reached $3.49 trillion in 2021. Along with those transactions came $77.48 billion in merchant fees—just for Visa and MasterCard.
Why call those out those two processors in particular? Well, it’s because they’re behind about 576 million credit cards. Oh, and they also control 87 percent of the processing market.
In the span of just one decade, Visa and MasterCard swipe fees have risen 137 percent. So, it’s not surprising that merchants are supportive of the Credit Card Competition Act.
There are, indeed, restaurant and hospitality groups attached to the MPC’s letter to Congress. Taking a quick glance, Denny’s franchisees, Dutchman Hospitality Group, and Mandalay Hospitality Group are among the signees.
Obviously, this makes sense—swipe fees are among the highest costs operators face every day.
Where’s this Bill Currently?
It shouldn’t be too shocking to find that this has yet to make much progress. The bill’s sponsors, Sens. Richard Durbin (D-IL) and Richard Marshall (R-KS), introduced it in the senate at the end of July.
Three months later, October 28, an attempt was made to include the bill in the National Defense Authorization Act (NDAA). For those who are unfamiliar, the NDAA is known as a “must-pass” bill. After all, it specifies the US Department of Defense’s (DoD) budget and expenditures each year.
Along with a reported 900 other “riders,” Sens. Durbin and Marshall tried to get their bill passed within the NDAA. Unfortunately for the senators and supporters of the bill, the NDAA vote was pushed until the middle of November…which we’re now past.
Of course, the US did just undergo a mid-term election cycle. So, I suppose it’s reasonable to be a bit more patient with the Senate and the progress of this bill.
Those who work in or support our industry can make their opinion of this bill known. Just follow this link to the National Restaurant Association Credit Card Competition Act portal.
Image: Clay Banks on Unsplash