The Electronic Payments Coalition (EPC) has issued a response to the recent antitrust suit filed by the U.S. Department of Justice against Visa. The statement, released by EPC Executive Chairman Richard Hunt, criticizes the government's approach towards payment networks.
Hunt expressed concerns over what he perceives as an extensive governmental effort targeting these networks. "The CFPB and Department of Transportation have already been weaponized against payment networks," Hunt stated. He further quoted CFPB Director Chopra, saying, "this is an all of government’ crusade."
Reflecting on past regulatory measures, Hunt mentioned the Durbin Amendment, which imposed price controls on debit card networks over a decade ago. According to him, these controls did not benefit consumers as intended. "Savings were not passed to consumers; in fact, retailers actually raised prices," he said.
Hunt also pointed out that Senators Durbin and Marshall are pushing for similar regulations on credit cards. He questioned the effectiveness of such measures and called for a different focus from the Department of Justice. "The Department of Justice should instead examine why, despite promises, corporate mega-stores have repeatedly lied about passing savings on to consumers or not hiking prices higher than inflation," Hunt argued.
The EPC believes that investing in new technologies and creating national data security standards will strengthen the payment system.