Trump Backs Credit Card Swipe Fee Crackdown-Why Rewards Get Cut and Fees Go Up
View from the Wing • • business
Key Points:
- President Trump endorsed the Durbin-Marshall Credit Card Competitive Act, which aims to cap credit card swipe fees and limit merchant fees, adopting traditionally Democratic economic positions despite concerns it could harm consumers and benefit retailers disproportionately.
- The legislation is unlikely to pass and is viewed largely as election-year politics, serving to raise campaign funds on both sides while highlighting the Republican Party's shift towards increased economic regulation.
- Critics argue the bill would force card issuers to allow merchants to choose payment routing, resulting in consumers losing card rewards without guaranteed price reductions, as seen in similar policies in Europe and Australia.
- Historical evidence, including the Durbin Amendment's impact on debit cards, shows that capping interchange fees reduces banking services and rewards, pushing vulnerable consumers toward costly
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