Sales via credit and debit card transactions contributed nearly $12 trillion to the U.S. economy in 2024, as reported by Nilson. Richard Hunt, Executive Chairman of the Electronic Payments Coalition, stated that these cards "played a vital role in keeping our economy moving." He highlighted their ease of use, security features, and cashback rewards as beneficial for both consumers and businesses.
Hunt emphasized that businesses gain from the speed and reliability of card payments, which ensure secure and timely transactions. Major payment networks continue investing significantly to enhance consumer protection while maintaining flat processing costs for almost a decade.
A study by the IHL Group revealed that handling cash incurs substantial costs for businesses—at least 4.7%—compared to approximately 2% for credit card processing, with debit cards having capped rates.
However, some politicians and interest groups are advocating for legislation imposing new mandates on credit cards. The Durbin-Marshall mandates would require credit cards to operate on secondary networks, potentially increasing fraud risks and undermining rewards programs.
Proponents argue these mandates could lower consumer costs. Yet, the Congressional Research Service found it unclear if retailers would pass any savings onto consumers. Furthermore, the Federal Reserve Bank of Richmond noted that after price caps on debit card processing fees were implemented, 98% of retailers either maintained or increased prices.
Hunt criticized this legislative push: “D.C. politicians and their campaign donors are trying to build a false narrative to pass a law that hurts small businesses and consumers so the largest corporate mega-stores can have another windfall.”
Investing in technology and establishing national data security standards is seen as a pathway to fortifying the payment system.