The Government Accountability Office (GAO) has released a report requested by Senator Dick Durbin and Congressman Lance Gooden concerning the government's use of credit cards. The report, which covers the year 2023, reveals that credit and debit card transactions facilitated $43 billion in payments and generated nearly $500 million in rebates for the government. Approximately 750 million transactions were conducted by government entities, with processing costs remaining below 2%.
Richard Hunt, Executive Chairman of the Electronic Payments Coalition, commented on the findings: "The independent GAO report once again proves what numerous previous other reports and small businesses across the country have long known: Credit and debit card payments are efficient, safe, secure and less costly and burdensome than handling cash payments." He also criticized politicians supporting new mandates like the Durbin-Marshall bill.
The GAO highlighted that cashless payment systems at select National Parks resulted in net savings due to high cash processing costs. The Post Office reported reduced theft risks associated with a shift to card payments. Federal officials noted improved operational efficiency and reduced administrative costs through card acceptance.
The study indicated that over 85 federal entities collected more than $43 billion using various payment cards, with processing costs amounting to 1.8% of revenue.
Senator Durbin also called for a hearing from the Consumer Financial Protection Bureau and the Department of Transportation regarding these findings.