When consumers pay with a credit card, merchants are charged a swipe fee by the credit card network for processing the transaction. However, the card industry has become dominated by Visa and Mastercard, which together control over 80% of the industry’s market share. This power over the industry has allowed both companies to dictate a schedule of ever rising swipe fees to major banks, who accept high rates to avoid competing with each other. This cartel-style price fixing creates one single-priced banking behemoth that has resulted in excessive swipe fees and the sidelining of competitors, forcing businesses to pay more than triple the fees they paid just a decade prior. In Utah alone, merchants paid over $1 billion in swipe fees in 2023.

Unfortunately, rising fees often force small businesses to increase the price of goods and services to cover costs. As a result, swipe fees have a multiplying effect on inflation as higher prices lead to larger transaction totals, which, in turn, means greater swipe fees, feeding a damaging cycle of rising costs. This leaves small businesses and consumers stuck shouldering a majority of the burden from swipe fees.

This worsening problem for both small businesses and consumers is precisely why Congress needs to pass the CCCA. It would allow merchants to have the choice between at least two different credit card networks when processing payments. Visa and Mastercard would no longer be the only choices available to business owners, meaning they would have an incentive to lower swipe fees to avoid losing customers. Card companies would also be motivated to improve security and other services to make themselves appealing against competitors. All in all, lowering swipe fees would be a huge relief for Utah businesses, which are estimated to save more than $163 million each year.

It’s not hard to see why the CCCA is gaining popularity. Recent polling shows the bill only has 7% opposition among voters, with more than 50% of Americans supporting it. The benefits of this bill are too good to pass up, as savings would help businesses lower prices and invest in their employees. Small businesses are constantly competing to attract customers and expand; it’s only fair that massive corporations like Visa and Mastercard do the same.

Credit card executives have benefited from a lack of competition and arbitrarily high swipe fees for long enough. I hope Sens. Mike Lee and John Curtis will stand with Main Street over Wall Street and pass the CCCA this year to relieve rising costs on Utahns.

Ryan Smith is the former chairman of the Utah College Republicans.