WASHINGTON — A new poll commissioned by the Merchants Payments Coalition –which stands opposite credit unions on the issue of card interchange-found that a large majority of voters believe credit card swipe fees contribute to higher consumer prices and support congressional action to reduce those fees, according to the organization.
The coalition, which advocates for changes to card payment processing rules and supports the proposed Credit Card Competition Act, said the survey was conducted by polling firm Co/Efficient among 9,264 likely voters in 41 competitive U.S. House districts.
According to the coalition, the survey found:
- 73.6% of respondents said they understand that credit card swipe fees are built into the prices consumers pay.
- 75% said Congress should take action to reduce swipe fees.
- 12.9% said they oppose congressional action on swipe fees.
“This poll starkly underscores what we already know: Consumers are tired of being unfairly squeezed by credit card companies, and they are looking to lawmakers to rebalance the scales,” Doug Kantor, a member of the coalition’s executive committee and general counsel for the National Association of Convenience Stores, said in a statement.
80% Increase Cited
According to the Merchants Payments Coalition, credit and debit card interchange fees rose 80% since the COVID-19 pandemic and reached a record $198.25 billion last year. The coalition contends that the fees increase costs for merchants and ultimately raise consumer prices.
The group also pointed to recent developments at the state level, noting that a federal judge blocked an Illinois interchange fee law last week and that similar legislation in Colorado was vetoed, which the coalition said increases pressure for federal action.
The proposed Credit Card Competition Act would require financial institutions with at least $100 billion in assets to enable credit cards to be processed over at least two unaffiliated payment networks. Under the proposal, transactions could be routed over networks other than those operated by Visa or Mastercard, including competitors such as NYCE, Star and Shazam.
What Supporters Argue
Supporters of the legislation argue that increased competition among payment networks would reduce processing costs, improve security and save merchants and consumers money. Opponents, including many banking and credit union organizations, have argued that interchange revenue helps fund card rewards programs, fraud prevention efforts and other consumer services.
The Merchants Payments Coalition said it believes the legislation would save merchants and consumers an estimated $17 billion annually through increased competition in the card payments market.
