January 1, Senators Put Pressure on Credit Card Companies Over Fees

Visa and Mastercard faced severe scrutiny from Senators for upping swipe fees on merchants, further impacting consumers’ wallets amid rising inflation.

Executives from the two credit card giants answered questions about increasing swipe fees during a hearing with the Senate Judiciary Committee this week.

Committee Chairman Sen. Dick Durbin (D-IL) cited comments on a Visa earnings call from CEO Al Kelly that the company is a “beneficiary of inflation.”

Durbin called for new regulations to regulate the credit card industry and prevent “unreasonable fees.”

Sen. Chuck Grassley (R-IA), the committee’s ranking member, stressed the need for caution in considering any new regulations.

“There’s a balancing act here that we need to acknowledge, and that any future action should be carefully considered for possible impact,” Grassley said. 

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Senators grill Visa, Mastercard execs over swipe fees