As an advocate for free market principles, I have serious concerns about proposed legislation that will upend the credit card system our nation’s economy relies on. The legislation (S. 1838) introduced by Senators Dick Durbin and Roger Marshall, has significant potential to disrupt the delicate balance of our free market system.
The free market only works when there is minimal government interference, ensuring innovative and efficient competition for consumers. The Durbin-Marshall legislation aims to expand the government's role in the private market interchange fees, also known as swipe fees, by creating a new routing mandate for credit cards, essentially imposing a back-door price control on credit card interchange fees.
This legislation is being pushed by big-box retailers like Walmart and Target so that they can make more money by paying less to accept credit card transactions.
In addition, the potential impact of the Durbin-Marshall legislation on credit card rewards cannot be ignored. Consumers and small businesses rely on and expect these rewards, such as points and cash-back. This increased government intervention would lead to a world without credit card rewards, similar to something we’ve all seen happen to debit card rewards.
A free-market system operates best when it’s interfered with least, and we should seek solutions that promote fair competition, accessibility to credit, and the long-term health of our economy. As a longtime supporter, I hope Senator Ron Johnson will oppose the Durbin-Marshall credit card bill and continue to fight for the free-market values he’s always fought for.
