Bill would rein in excessive swipe fees

Iowa retailers are a key part of the economic engine in this state, where they service customers and communities, and we need a regulatory environment that supports the broader retail and convenience industries. Iowa retailers are fed up with excessive credit card “swipe fees” that add burdensome costs to purchases for everyday items. From gas to groceries, the cost is impacted by these mounting fees that lack any competitive pressure.

In 2022, credit card companies and their partner banks collected nearly $130 billion — increasing by 20% compared to the year before. And fees are set to increase yet again in October.

Credit card companies are able to charge these excessive fees because there’s a lack of competition. Visa and Mastercard control 80% of the market and are therefore empowered to inflate fees without any consequences.

Fortunately, there’s an opportunity on the horizon that could help rein in excessive “swipe fees.”

The Credit Card Competition Act would give merchants more options for how to process customer transactions similar to debit card transactions — creating competition and choices beyond the large credit card companies. The free-market incentives will lower costs for businesses and consumers alike.

I urge Iowa's elected leaders in Congress to support the bill.

Tom Brennan

National Association of Convenience Stores

Ankeny