Durbin Urges the Senate to Bring His Credit Card Competition Act to the Floor for a Vote

Floor Speech

"We're fighting inflation in America, and Visa and Mastercard are on the other side of the battle. Consumers and retailers are trying to keep prices down. Visa and Mastercard are trying to run them up with a fee they charge for each transaction.

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American consumers today are concerned about inflation and the high prices of groceries and gas. What they may not know is that the fees charged when they use their credit card, known as swipe fees, are adding to this problem," said Durbin. "Each time a credit card is used--whether for groceries, gasoline, critical drugs, or anything else--Visa and Mastercard charge an interchange fee. Some of that they keep for themselves, but most of it is given to the bank that issued the card.

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Visa and Mastercard set the fees on behalf of thousands of banks and tell merchants, the retailers, the restaurants to take it or leave crit. Merchants have no real choice but to accept the outrageous fees if they want to have credit cards used by their customers. There is no negotiation or competition. Small business owners and consumers, take it or leave it, are holding the bag.

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Despite the nearly $100 billion Visa and Mastercard took out of communities and small businesses across the country last year, guess what they're going to do in October? They're going to raise fees again. While we're trying to fight inflation at every angle we can find to bring down the cost of groceries and gas, the credit card companies have decided it's just the right time to have this take it or leave it fee increase," said Durbin. "When credit card fees go up, it increases [inflationary pressures]. And consumers ultimately pay the price. I strongly urge Visa and Mastercard to reconsider their profoundly misguided decision… I'm not holding my breath.

I stood up to the big banks and the card giants in 2010 when I introduced similar reforms to the debit card market. And I will always choose Main Street over Wall Street. It is long overdue for Congress to break up the sweetheart deal that Visa, Mastercard, and the biggest banks in America, and certain airlines, enjoy. We must bring the bipartisan Credit Card Competition Act to the floor for a vote," Durbin concluded. "The question is whether my colleagues will listen to the consumers and families that are struggling with inflation, whether they'll listen to the restaurants that they frequent as I do, whether they'll listen to the small shops and businesses that have to pay these outrageous fees. Give them a chance. Tell Visa and Mastercard they cannot lord over these people who are working hard for a living and shouldn't be stuck with these duopoly fees."

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