Peter Gwaltney’s Post

The dominance of Visa and Mastercard in the U.S. credit card market has sparked concerns about anti-competitive practices. This duopoly allows these companies to set high fees for retailers, which are often passed on to consumers in the form of increased prices. The U.S. Senate Judiciary Committee recently held a hearing to address this issue, during which grocers and other retailers testified about the negative impact of these fees on their businesses and consumers. The hearing shed light on how Visa and Mastercard's control over the market enables them to set fees without significant competition. This lack of competition can lead to higher costs for retailers, which are ultimately borne by consumers. The Credit Card Competition Act, currently under consideration, aims to address this issue by introducing greater competition in the market. By requiring large banks to allow routing transactions through multiple networks, the act could potentially lead to lower fees and benefit both retailers and consumers. However, it remains uncertain whether this legislation will be sufficient to significantly disrupt the current market dynamics and foster a more competitive landscape. The outcome of this debate will have significant implications for the future of the credit card industry and its impact on consumers and businesses. #VisaMastercardDuopoly #CreditCardFees #ConsumerCosts #RetailIndustry #Antitrust #CCCA #SenateHearing #FinancialRegulation #EconomicImpact #MarketPower #ConsumerProtection

Last week, U.S. Senator Mark Warner introduced the Discount Window Enhancement Act of 2024, aiming to modernize the Discount Window. I recently discussed the need for this modernization in an article for Law360 and Law360 UK. The proposed legislation directly addresses key points highlighted in my article. Check out the article here: (https://lnkd.in/eu6axCF8) and a summary of the legislation here: (https://lnkd.in/euUAkQBe). Your thoughts and experiences on the Discount Window are invaluable as I will be delving further into this critical topic in upcoming pieces. Please feel to comment and/or DM me. #RegulatoryCompliance #BankingRegulations #DiscountWindow #RiskManagement #FinancialRegulations #RegulationA #SenatorMarkWarner #FinanceLegislation

Are you guilty of applying for store credit in search of a "better deal"? Learn more about the effects of these cards in July's blog from our Financial Gurus. https://lnkd.in/gtk9Rv5e #ConsiderThis #StoreCredit #Blog #FinancialGurus #WWFCU

The Credit Card Competition Act (CCCA) If you’re in the fintech or payments industry you may have already heard about the CCCA and possible implications if this Act passes. However if you haven’t well here is what you must know: What is the CCCA? The Credit Card Competition Act seeks to create a more competitive credit card playing field. Banks/Issuers would be mandated to enable card payments to be routed over at least one network that competes with VISA or MasterCard. Why is the act being considered ? The bill’s intention is to drive interchange fees down by letting merchants choose which network rails they use to route credit card transactions. Banks/Issuers would be mandated to allow card payments to be routed over at least one network that competes with Mastercard/Visa.  Who will benefit the most from this legislation ? The act seeks to benefit merchants primarily as they would have the option to choose networks with lower transaction processing fees than those charged by MasterCard and Visa. Presently MasterCard and Visa account for approximately 80% of the credit card market. What is the expected impact on consumers? At a high level, it is expected that while merchants will benefit from lower fees it is expected that they will in return pass those savings on to their customers. However, experts speculate that consumers could be affected in other ways. With the possible reduced income from interchange and other processing fees, credit card issuers may cut back on their reward programs which consumers have become so accustomed to and love. #creditcard #creditcardprocessing #credit #visa #mastercard #payments #paymentprocessing #merchantservices #merchants #consumer #card https://lnkd.in/eMWU3xRC

Thanks to a new rule from the Consumer Financial Protection Bureau, massive credit card late fees should become a thing of the past. The rule would cap late fees to just $8/ month once it goes into place #FinancialLiteracy #FinancialPlanning #PersonalFinance https://hubs.li/Q02p7_Rt0

Learn what SMBs want from their financial institution so you can support them during the holiday shopping season and throughout the year. #smallbusiness https://bit.ly/3Vg5o4q

Credit Unions, have you thought about these Top 5 questions recently for your Credit Card program?

It can be challenging to compare rewards credit cards as there are so many varieties of them. That's why Forbes Advisor made this list of the best options available in 2024. 👉 https://lnkd.in/et-sfRXg

The CFPB’s bold move to cut credit card late fees from $32 to $8 is shaking up the industry. Late fees account for up to 20% of revenue for some issuers, meaning this rule—set to take effect in May 2024 but currently tied up in litigation—could significantly impact their bottom line. While consumer advocates see this as a win against excessive penalties, financial institutions may rethink their pricing strategies to offset revenue losses. What’s your take? Will this lead to more fair practices, or will consumers end up paying in other ways?

Surprise: Confusing pricing makes it difficult for consumers to make informed financial decisions, including for financial products and services. We can put money back in consumers’ pockets by advocating for transparent terms and pricing across the financial system. The Consumer Financial Protection Bureau’s fight against junk fees has made meaningful progress in this area. #ProtectConsumers https://lnkd.in/g7d-YhDe