U.S. Senator Roger Marshall, M.D. today penned an op-ed for the Kansas City Star and Wichita Eagle about bipartisan legislation he recently introduced alongside Senator Dick Durbin (D-IL). The Credit Card Competition Act of 2022 would enhance competition and choice in the credit card network market, which is currently dominated by the Visa-Mastercard duopoly. Building off of debit card competition reforms enacted by Congress in 2010, the bill would direct the Federal Reserve to ensure that giant credit card-issuing banks offer a choice of at least two networks over which an electronic credit transaction may be processed, with certain exceptions.
“…Most people don’t think about what happens when they swipe their credit card at the grocery store — but they should. Because every swipe comes with it a fee, an ever increasing fee, invisible to most, but increasingly crushing our merchants and rising costs for consumers across the board. Just like a sales tax, Wall Street banks levy a 2-4% fee on every purchase you make with your credit card, and the retailer has to absorb or pass on this cost to consumers. I hope no one feels sorry for Wall Street, because I’m fighting for more competition… Over the next few weeks and months — maybe even for years to come — you will see the woke Wall Street banks continue to attack me. They will do what they always do when someone threatens their position at the top of the financial world: Toss around their endless wealth, litter the airwaves with their myths and come after me personally… I hope you will support local retailers and local community banks, which keep money in our home communities rather than sending it to Wall Street.”