More than 1,600 businesses, including Walmart and Target, are pleading with Congress to enact legislation that will limit the stranglehold that the two largest card networks – Visa and Mastercard – have on credit card payment transactions. The consortium of merchants are advocating that Congress force Visa and Mastercard to allow merchants to use at least one other card network for payments. Merchants claim that the new law would enhance competition and result in a decrease in the fees they pay. Under the proposal, top tier issuing banks – banks with more than $100 billion in assets – would have to enable at least one alternative network for credit card payment. The Federal Reserve would be instructed to develop the regulatory framework for the new proposal.
Walmart, Target Urge Lawmakers to Pass Bill Taking Aim at Visa, Mastercard Fees
