Visa and Mastercard Defend Fees Amid Senate Monopoly Allegations

The Senate Judiciary Committee convened to scrutinise the dominance of Visa and Mastercard, which collectively control 80% of the U.S. credit card market and charged over USD 100 billion in interchange fees in 2023.

Senators Dick Durbin and Roger Marshall introduced the bipartisan Credit Card Competition Act, aiming to mandate alternative payment networks to lower fees for businesses. Visa and Mastercard defended their fee structures, citing the need for security and quality services. However, critics, including the National Retail Federation, argued these fees disproportionately burden businesses and consumers, with Americans paying an average of USD 1,100 annually in swipe fees.

Adding to the controversy, Visa is under scrutiny in a Justice Department lawsuit alleging illegal monopolistic practices in debit card networks. The debate over a rejected USD 30 billion swipe fee settlement earlier this year further underscores the tension surrounding the credit card giants’ market practices.