WASHINGTON, D.C. – More than $93 billion..
That’s what Illinois Senior U.S. Senator Dick Durbin says consumers and merchants paid largely to Visa and Mastercard last year in credit card fees.
Durbin and both Republicans and Democrats on Capitol Hill say that could be lessened, if there was more competition for the credit card business.
“Each time a credit or debit card is used, Visa and Mastercard charge what’s called an “interchange” or “swipe” fee,” said Durbin (D-Springfield). “Some of that they keep for themselves. Most of that they give to the bank that issued the card.”
Durbin claims Visa and Mastercard set the fees on behalf of the banks that get a part.
What’s more, “they’re planning another interchange fee increase in October, which would increase the fees for small businesses by more than $500 million,” said Durbin, at a news conference on Capitol Hill Wednesday.
Durbin says the Credit Card Competition Act would require the largest banks to enable the use of two credit card networks instead of one, one of which must be a network other than what he calls the “duopoly” of Visa and Mastercard.
CLICK HERE for more information from Sen. Durbin’s office.
