Watchdog: Visa–Mastercard ‘duopoly’ spends millions blocking competition

Consumer watchdog statement Accountable.US precocious published a study accusing finance giants Visa and Mastercard of operating arsenic a duopoly to forestall title successful nan debit and in installments paper payments sector.

According to nan report, which has been viewed by Cointelegraph, nan 2 companies person spent much than $80 cardinal lobbying against authorities that would let competitors entree to nan payments sector. 

Because Visa and Mastercard relationship for nan mostly of in installments and debit paper transactions successful nan United States, Accountable.US alleges that they’re responsible for nan “sky-high” swipe fees faced by some consumers and businesses. 

“Visa, Mastercard, and their service of firm lobbyists person spent millions to effort and person Congress that accrued title is simply a bad point for consumers,” said Liz Zelnick, head of Accountable.US’ economical information and firm powerfulness program. She added:

“Despite their claims, it’s a deficiency of title that’s burdening mini business owners and their customers pinch sky-high swipe fees. Swipe fees are a 100 cardinal dollar drain connected our wallets, and it’s clip Congress put its ft down against anti-competitive in installments paper companies.” 

Ultimately, Zelnick concludes that nan deficiency of title created by what Accountability.US dubs nan Visa–Mastercard “duopoly” has contributed to “jacking up costs connected everything from state to groceries” for those successful nan US, “even for families who salary successful cash.”  

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The study references nan US Department of Justice’s (DOJ) caller antitrust suit against Visa. As Cointelegraph precocious reported, nan DOJ alleges that Visa engaged successful practices to incentivize institutions against partnering pinch competing costs work providers. 

“This suit is simply a reminder why Congress must enactment to springiness national regulators much devices to guarantee a fairer marketplace,” wrote Zelnick, adding that this could only beryllium accomplished by passing nan Credit Card Competition Act. 

Credit Card Competition Act

The Credit Card Competition Act of 2023 is simply a portion of bipartisan US authorities introduced by US Senators Dick Durbin and Lance Gooden, a Democrat and Republican, respectively.

It’s besides notably supported by existent Republican vice statesmanlike campaigner J.D. Vance. Based connected nan latest disposable information, nan Senate has yet to group a day to bring it to nan level for chat aliases a vote. 

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