Mike Neal, host and conservative commentator of the "Mike On The Right" podcast, said that the Credit Card Competition Act does not benefit consumers and fails to reduce prices. This statement was made on X.
"The Credit Card Competition Act is a fraud," said Neal, Host / Conservative Commentator. "Just like the Durbin Amendment, it hurts consumers. Only 1.2% of retailers lowered prices. Many raised them."
The Credit Card Competition Act aims to decrease merchant "swipe fees" by mandating banks to provide a choice of at least two payment networks for credit card transactions. The intention is to foster competition and lower costs for U.S. retailers. However, many experts argue that the actual impact on consumers remains uncertain, as reported by The Wall Street Journal.
According to a study by the Federal Reserve Bank of Richmond, after the Durbin Amendment capped debit card interchange fees in 2011, only about 1% of merchants surveyed reported reducing prices for consumers. The vast majority either maintained or increased prices, suggesting limited pass-through of savings.
A survey conducted by the Cato Institute found that following the Durbin Amendment, 22% of merchants raised prices while just 1.2% lowered them. Furthermore, 98% of retailers either kept prices the same or increased them, according to data reported by the Cato Institute.
As reported by LinkedIn and podcast platforms, Neal is a conservative commentator, podcast host, and former Indiana state legislator. He is known for his policy advocacy and media presence as the host of "Mike On The Right," where he addresses political and grassroots issues.