WASHINGTON–Senate Judiciary Committee Chair Dick Durbin (D-IL) wants the CEOs of Visa, Mastercard, United Airlines and American Airlines to testify before the committee on April 9 about credit card competition.
All of the companies have expressed opposition to the Credit Card Competition Act, of which Durbin is a co-sponsor. That legislation seeks to reduce card swipe fees, but opponents—which include credit unions—have said it will only raise costs and lead to limits on rewards programs. The bill’s other co-sponsor in the Senate is Sen. Roger Marshall (R-KS).
In the statement in which he called for the hearing, Durbin said opponents are using "false and misleading advertising" to oppose the bill and he further called United and American airlines that "have become credit card companies that fly planes.”
“It is critical that the [Judiciary] Committee, and the American people, hear directly from" the CEOs, Durbin said.
Merchants Welcome Bill
Not surprisingly, the nation’s merchants have issued a statement strongly supporting such a hearing.
“It’s time for the CEOs of Visa and Mastercard to answer for decades of their companies blocking competition over credit card swipe fees,” said Stephanie Martz, executive committee member of the Merchants Payments Coalition and chief administrative officer and general counsel with the National Retail Federation. “There are many questions to be addressed, most of all how they can justify fixing banks’ prices and inflating prices over $1,000 a year for the average family when it costs only pennies to handle a transaction. Senators should also hear why the card industry has repeatedly made false claims about the Credit Card Competition Act rather than honestly debating the issues on its merits. We look forward to hearing their answers.”
According to the MPC, the hearing would be the 18th on swipe fees over the past 18 years.
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