Credit Card Swipe Fees are the Top ‘Scam’ That People Accept as ‘Normal’
Take a look at this article: “Frustrated People Are Calling Out The ‘Normal’ Things We All Accept That Are Actually ‘Super Predatory’ And I'm Boiling With Rage”
What's the No. 1 everyday scam that is so “normalized” that people just “accept” it? That’s right – it’s credit card swipe fees.
The article includes this quote: "Credit card transaction fees are a 1-3% tax on the entire economy, and it costs like $10 to execute a million of those transactions for those companies. I'm a software engineer. I know what kind of effort goes into this on an ongoing basis, and it blows my mind away the kind of margins that these guys get away with."
How much are those giant margins?
Well, you can watch Visa and Mastercard executives testifying to that in questioning by Senator Josh Hawley at a Judiciary Committee hearing here. Their margins are 50% or more.
The whole exchange led Senator Hawley to note:
- “This is classic, classic monopolistic behavior and yet your testimony here today is you don’t want any competition.”
- “You have 80% of the market and you don’t want any more competition. I’m having a hard time finding that position defensible, let alone sympathetic.”
- “I mean, it’s unbelievable the amount of money that you’re making. It’s unbelievable what you’re charging small businesses and consumers, yet your testimony is please, please, please, please, please we can’t possibly have any competition.”
COMPETITION IS BETTER FOR EVERYONE
IT'S TIME TO PASS THE CREDIT CARD COMPETITION ACT