Durbin Joins Small Business Owners In Springfield To Discuss Credit Card Competition Act

SPRINGFIELD - U.S. Senate Democratic Whip Dick Durbin (D-IL) today joined small business owners at Café Moxo in Springfield to discuss how his recently reintroduced bipartisan Credit Card Competition Act will increase competition in the credit card market and put an end to the Visa-Mastercard duopoly that is squeezing small businesses-and, ultimately, consumers.

Today, Visa and Mastercard control about 85 percent of the credit card market and refuse to negotiate fair terms with Main Street merchants. Currently, the average American family pays nearly $1,200 per year in swipe fees, while banks profit $111.2 billion annually from credit card swipe fees charged by Visa and Mastercard.

"As Illinoisans struggle to get by, big banks are seeing record profit margins that are more than six times the profit margins of retailers," said Durbin. "By bringing real competition to credit card networks, we can reduce swipe fees and hold down costs for small business owners and their customers. It's time to pass my Credit Card Competition Act."

"Credit card processors charge more than $187 billion credit and debit card swipe fees each year. With no guardrails in place, these fees jumped 11.6 percent in just one year - siphoning money away from retailers that hire and invest in our communities. This proposal would increase competition and transparency, helping to drive down costs while supporting local businesses and protecting consumers," said Rob Karr, president and CEO of the Illinois Retail Merchants Association. "We thank Sen. Durbin for his leadership and dedication to increasing fairness in the credit card marketplace."

Durbin was joined by Mark Forinash, Owner of Café Moxo, Cindy Frisina, owner of Legendary Small Town Trading Co., Terry Boulander and Becky Baumgart, owners of Girls in White Satin, and Rob Karr, President and CEO of the Illinois Retailers Merchants Association.

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