Senate Judiciary Examines Visa-Mastercard Fee Dominance

Lawmakers consider legislation to increase competition and reduce credit card transaction fees.

The Senate Judiciary Committee held a hearing on the high transaction fees imposed by Visa and Mastercard, which control 83% of the U.S. credit card market.
The proposed Credit Card Competition Act aims to introduce more networks to handle transactions, potentially reducing interchange fees that currently range from 1% to 3%.
Retailers argue that these fees contribute to inflation and cost U.S. consumers an average of $1,100 per household annually.
Visa and Mastercard executives defended the fees, stating they fund security measures and fraud prevention, but lawmakers remain skeptical about their necessity.
Bipartisan support for the legislation is growing, with Republicans indicating readiness to act if Visa and Mastercard do not address the issue themselves.