Clearing the Misinformation Smokescreen: The Truth about the CCCA
The credit card companies are robbing you and then laughing about it.
The ongoing discourse around the Credit Card Competition Act (CCCA) has seen an increasing surge of misinformation aimed at influencing public perception of this critical piece of legislation. This campaign isn’t propelled by facts or economics, but primarily by entities promoting socially progressive and “woke” narratives.
At the heart of America’s economy are small businesses. They are the lifeblood of our national prosperity, fueling innovation and creating jobs, but they face formidable adversaries in Visa and Mastercard. These two corporations control approximately 80 percent of the credit card market and impose hefty swipe fees, costing each individual American family an astounding $1,000 annually, and taxpayers $240 million in 2022. These fees operate as a de facto subsidy for Visa and Mastercard, with the cost shouldered by the American consumer.
Not only do these companies pick your pocket at the cash register, but they laugh their way to the bank. Visa’s CEO’s comment that “inflation has been positive for us” provides a troubling insight into their profit-driven motives, revealing a stark disregard for the impact of their practices on American families and small businesses. Their unparalleled market influence has allowed them to impose some of the world’s steepest fees on U.S. merchants. These fees include interchange fees, otherwise known as swipe fees, which they compel merchants to pay to the issuing banks, and network fees paid directly to them. The end loser: the consumer, who unwittingly bears these exorbitant costs through the price tags on their purchases. My proposed legislation is not just about giving small business a fighting chance; it’s about ensuring a fair playing field and safeguarding the economic interests of the middle class.
The credit card powerhouses are Visa and Mastercard, corporations that have poured millions into diversity, equity, and inclusion (DEI) initiatives, fighting perceived racial injustice and advancing woke virtues. Visa is working to clamp down on your Second Amendment rights. Simultaneously, the company’s relentless support for the Trevor Project, an organization advocating for life-altering procedures on minors, is a clear endorsement of radical gender ideologies. These companies peddle a warped agenda that undermines traditional values and infringes upon our fundamental rights. Americans should not be fooled by their facade of social responsibility. Congress must challenge these corporate giants and uphold the principles that made our nation great. Their opposition to the CCCA unmasks a profound disconnect between their public-facing image and the underlying economic realities they perpetuate.
The CCCA represents a targeted, market-oriented response to this imbalance. It introduces a level of competition to an industry these two corporations have long dominated. By mandating the largest banks incorporate a secondary competitive network on every card, the CCCA disrupts the control Visa and Mastercard hold over the market. This has the potential to drive innovation, push down costs, and provide small businesses with more choice—a cornerstone of a healthy market economy.
Besides invigorating competition, the CCCA also addresses two other critical concerns: the security of our financial system and our national security. In an era where cyber threats loom large, having a secondary network capable of processing transactions offers a necessary fail-safe, guarding against potential cyberattacks. Additionally, this legislation bars networks funded or sponsored by foreign state entities from processing U.S. credit card transactions, providing a defense against potential foreign influences, like the CCP’s UnionPay.
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It’s worth noting this legislation’s provisions specifically target the largest banks—those with assets of $100 billion or more—ensuring these new requirements do not burden smaller financial institutions. This approach preserves the vitality of our smaller banks while holding larger entities accountable for their practices.
Despite the clear benefits the CCCA brings to the table, companies that push woke ideologies are now muddying the waters with skewed narratives about this bill. We must look past glossy PR campaigns and take a hard look at the misinformation these corporations are distributing. Our small businesses deserve a credit card market that operates on free market principles, and the CCCA promises to deliver on this mission.
An earlier version of this article listed $226 million, rather than $240 million, as the total cost of fees to the American taxpayers.