Americans are finally seeing the light after suffering through four years of bad economic policies. Under President Trump, we’re seeing economic progress, but we need to continue advancing policies that will help families and small-business owners.
For years, an area in which we desperately need to see reform is in the payments industry, where swipe fees have continued to soar under the duopoly of Visa and MasterCard. Fortunately, that is where the Marshall-Durbin Amendment, introduced as an amendment to the GENIUS Act, comes into play. The Marshall-Durbin Amendment is bipartisan legislation that will provide much-needed competition in the credit card market and help lower swipe fees.
With Visa and MasterCard controlling 80 percent of the market, they have caused swipe fees to steadily rise year after year. These fees range from 2 percent to 3 percent and are generally either passed on to the consumer or eaten by the business. In fact, the typical American family shells out $1,200 annually in costs, thanks to swipe fees. For many small businesses, particularly ones operating on thin margins, the fees are more than just marginal. Choosing to absorb the fees rather than pass them down to customers results in tough decisions being made for staffing, repairs, upgrades, or even whether the business can remain afloat.
The Marshall-Durbin Amendment will fix that.
This amendment mandates that credit card issuers with assets exceeding $100 billion to offer merchants at least two unaffiliated networks for processing credit card transactions. By introducing competition, the amendment seeks to reduce the exorbitant swipe fees that burden merchants and, by extension, consumers. These potential savings from lower swipe fees could be passed on to consumers to help lower prices and prevent further increases. Additionally, businesses experiencing lower swipe fees could choose to boost their staff, increase pay, bolster inventory, or afford improvements. Given the likely effects the Marshall-Durbin Amendment would have, it is no surprise that this legislation has been supported by most Americans.
Supporting this legislation is an easy win for Republicans. For conservatives who champion free markets and competition, the amendment represents a step toward dismantling monopolistic practices that stifle innovation and inflate costs.
Encouraging competition in the credit card business aligns with the goal of fostering a more dynamic and consumer-friendly financial system. Not to mention that this is a chance to stand up for those who have been suffering from the financial burdens of inflation, regulation and poor policy.
As the Senate considers the GENIUS Act and its amendments, it’s imperative that Republicans back measures that seek to promote competition and protect consumers and businesses from inflated fees. This should be a no-brainer. While it has never been in doubt, supporting legislation like this will prove to be the latest reminder that Republicans are the party of small businesses, consumers and the American Dream. Let’s not let that opportunity go to waste when the final vote on this amendment is called.
