The Credit Card Competition Act (CCCA), put forward by Senators Durbin and Marshall, is a step toward trying to fix a growing problem in the U.S. payments system.
When you use a credit card, the merchant pays interchange fees to process the transaction. The 2022 Nilson Report tells us that, in the U.S., merchants paid $126 billion in fees for $5.8 trillion in credit card purchases—about 2.2 percent of the value sold. Secure funds transfer and fraud prevention are necessary costs to process a card transaction, but these costs are nowhere near 2 percent of trade volume, especially given the decades of advances in digital payments technology.
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