NewsNation

Major retailers battling credit card companies over fees

(NewsNation) — Retail giants including Target and Walmart are locked in a battle with credit card companies Visa and Mastercard, which they say have a duopoly over the credit card market, allowing them to impose transaction fees at will.

Congress introduced a bill this summer that would allow retailers to process card transactions through networks other than Visa and Mastercard, according to reporting by the Wall Street Journal.


Retailers contend the “duopoly” of Visa and Mastercard hold over transactions leads to higher prices for consumers.

University of San Diego finance professor Dan Roccato told NewsNation those transaction fees cost the average American family $900 every year.

“They have in economics what we would call a duopoly. Between the two of them (Visa and Mastercard), they control about 80% of the market and that has big merchants and small merchants sayin’ “foul, not fair,'” Roccato said.

Roccato’s full interview can be viewed in the video above.