Record profits in the credit card industry underscore the urgent need for Congress to address soaring swipe fees that burden small businesses and consumers, according to the Merchants Payments Coalition (MPC). JPMorgan Chase, the largest U.S. credit card issuer, reported a record $54 billion in profits for 2024, a 17.9% increase over 2023. Similarly, Citigroup, Wells Fargo, and Bank of America also reported significant profit increases.
Swipe fees, which jumped 50% since the pandemic, reached $172 billion in 2023. These fees, set by Visa and Mastercard, inflate costs for small businesses and add over $1,100 annually to the average family’s expenses. Senator Josh Hawley (R-Mo.) criticized Visa and Mastercard’s lack of competition, calling their profits “unbelievable.”
The Credit Card Competition Act, currently under consideration in Congress, aims to introduce competition by requiring banks with over $100 billion in assets to enable at least one alternative payment network for processing. The move could save merchants and consumers more than $16 billion annually by fostering competition over fees and service quality.
The MPC urges Congress to act swiftly to curb excessive fees and promote fair competition, benefiting businesses and consumers alike.
