Senate Committee Questions Visa, Mastercard Executives

The Senate Judiciary Committee held a hearing on the dominance of Visa and Mastercard in the credit card market, with bipartisan support for the proposed Credit Card Competition Act, which aims to reduce interchange fees by requiring banks to offer alternative payment networks. Senators criticized the two companies for charging over $100 billion in fees in 2023, which they argue disproportionately affects small businesses and consumers. While Visa and Mastercard defended their fees as necessary incentives, lawmakers warned that legislative action may follow if no solution is found. The bill's proponents highlight that merchants in Europe pay significantly lower fees compared to U.S. merchants, calling for increased competition to ultimately benefit consumers. Visa and Mastercard executives faced tough questioning, underscoring the growing pressure on these companies amid rising inflation and consumer costs. Despite the push for reform, the bill's future remains uncertain, as it has garnered limited support in Congress since its introduction.