Tyler Reporter

Rep. Lance Gooden, along with Senator Dick Durbin, has called for a comprehensive review by the Government Accountability Office (GAO) to assess the federal government's interchange fee expenses over the past five fiscal years. This move comes as it has been revealed that the federal government, and ultimately American taxpayers, are burdened with exorbitant credit card interchange fees amounting to $240 million annually.

Visa and Mastercard, the dominant players in the credit card market, collectively control 83% of general-purpose credit cards and generate billions of dollars in fees each year. Gooden's request sheds light on a 2008 GAO report that discovered federal entities were unable to negotiate lower interchange fees. Since 2010, taxpayers have spent over $2 billion on swipe fees, highlighting not only a significant drain on public funds but also a concerning lack of competition in the market.

Rep. Gooden emphasizes that this credit card duopoly is not just detrimental to market competition but also exemplifies corporate greed. He stated, "Washington is effectively subsidizing Visa and Mastercard with taxpayer dollars. Every swipe fee is an unnecessary tax on the American people and a government handout to Wall Street. If the federal government is unable to competitively negotiate interchange fees, how can we expect small businesses to do so?"

Senator Durbin echoes these sentiments, highlighting the power wielded by Visa, Mastercard, and the nation's largest banks in the credit card system. He believes that excessive fees, including those imposed on the federal government, should be addressed to promote genuine market competition. Durbin states, "We should inject real market competition into a credit card industry that for years has been lining Wall Street's pockets with excessive fees borne by Main Street consumers, small businesses, and U.S. taxpayers."

The joint request from Rep. Gooden and Senator Durbin emphasizes the need for a detailed and updated analysis from the non-partisan GAO. By calling for a comprehensive review of the federal government's interchange fee expenses, they aim to expose the competitive imbalance and advocate for fairer practices in the credit card industry.

To read the full letter and learn more about this issue, visit the official website of Rep. Lance Gooden.

Click this link to access more information: https://gooden.house.gov/press-releases?ID=4AD92847-2B01-490A-8A9F-DE8F76383989