The 119th Congress has been sworn in, and it’s time for federal lawmakers to deliver on the promises they made to the American people.

There are a whole host of issues for Congress to sort through, but one way to start the new legislative session off right is to reintroduce and pass the popular, bipartisan Credit Card Competition Act (CCCA) and lower the exorbitant swipe fees that negatively impact small businesses and raise prices for consumers.

Swipe fees, which are charged to merchants every time a credit card is used, have significantly increased over the last decade. As a result of these increases, more and more of a financial strain is being felt by small businesses, especially here in Maine. Over 99 percent of businesses in Maine are considered “small businesses” and these small businesses employ a majority of our state’s workforce, making the swipe fee burden uniquely painful on our state’s economy. In 2023, Mainers alone paid over $350 million in swipe fees.

The massive jump in swipe fee rates is thanks largely to Visa and Mastercard, two of our nation’s largest and most powerful financial institutions. These two companies have a firm hold on the credit card payments industry, controlling more than 80 percent of the market.

While rising prices continue to threaten the vitality of small businesses and the budgets of everyday Mainers, Visa and Mastercard continue to maintain some of the largest profit margins of any industry. As recently as September 2024, Visa operated with more than a 55 percent net profit margin with Mastercard hovering just under 45 percent.

For comparison, the average profit margin for general retail barely eclipses 2 percent, leaving merchants with no room to accommodate unjustified rate increases. As things currently stand, those least equipped to handle the financial stress of hefty swipes are the ones bearing the brunt of the costs.

Every increase in fees means merchants are forced to pass them onto consumers via higher prices on goods and services. The average American family pays over $1,100 a year in higher prices as a result, stretching even further the same budgets that have been pushed to the limit by a global pandemic and the subsequent inflation that has occurred over the last four years.

That’s why we need Congress to pass the CCCA. The bill would allow retailers the choice between at least two different credit card networks when processing a transaction.

The result would be more competition for Visa and Mastercard, encouraging them to lower swipe fees to a more reasonable rate in order to compete. It’s estimated this legislation will save Mainers an estimated $54 million annually, providing significant relief for our state’s small business economy and the consumers it serves.

I’m proud Rep. Chellie Pingree has previously been a cosponsor of the CCCA, and I hope she will continue to champion this important legislation in the new 119th Congress.

Voters made clear this last election that rising prices were at the top of their minds when casting votes at the ballot box, and Congress must deliver relief by passing the CCCA.