MPC's recent tweet has sparked controversy by placing blame on credit card companies for rising costs, a claim that appears to overlook significant data. According to the Nilson Report, the weighted average of credit, debit, and prepaid card processing fees has remained relatively stable over the past decade, with figures showing 1.51% in 2014 and 1.53% in 2023.
The Federal Trade Commission (FTC) has pointed to large grocery conglomerates such as Walmart, Kroger, and Amazon as the primary drivers behind escalating grocery prices. The FTC reported that these retailers leveraged their market power to sidestep supply disruptions during the COVID-19 pandemic and subsequently maintained high prices to boost profits. The report stated, “Grocery retailers appear to have used their market power to avoid supply disruptions during the COVID-19 pandemic and that grocery prices remain high because companies used rising costs as an opportunity to boost profits … raising questions about the need for the price increases in the first place.”
FTC Chair Lina Khan commented on the findings: “Dominant firms used [the pandemic] to come out ahead at the expense of their competitors and the communities they serve.”
The conversation around payment systems continues with calls for investment in new technologies and legislation for national data security standards, which proponents argue will lead to a more robust payment infrastructure.
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