US: Senate Judiciary Antitrust Hearing On Visa/Mastercard Underway Shortly

Senate Judiciary Committee is shortly due to convene for a hearing on, “breaking the Visa-Mastercard duopoly, focusing on bringing competition and lower fees to the credit card system.” LIVESTREAM 

• The hearing will receive testimony from Mastercard President Linda Kirkpatrick and Senior Advisor to Visa CEO Bill Sheedy.
• The committee will consider a bipartisan bill introduced by Chair Dick Durban (D-IL) and Senator Roger Marshall (R-KS) that would force card companies to allow retailers more payment options than just Visa and Mastercard. The legislation argues more payment diversity will help lower ‘swipe fees’. Card companies respond that retailers are unlikely to pass any potential savings on to consumers.
• Punchbowl News reports: “Under Durbin, Judiciary has sought jurisdiction over credit cards on antitrust grounds. Visa and Mastercard are the largest players by far in the credit card space, and the retail sector believes the two companies have used their market share to keep swipe fees unfairly high… The Senate Banking Committee hasn’t really touched this issue...”
• Punchbowl adds: “Credit card reform is one of Washington’s most interesting lobbying fights because it pits the banking and retail lobby against each other. As a result, lawmakers are often loath to take a public position on it. Today’s hearing will be an interesting peek at where senators’ priorities seem to lie.”