Credit Card Companies Face Scrutiny Over $138 Billion in Fees, 29% Interest, Amid Calls for Competition Act

Credit card companies, particularly Visa and Mastercard, are under scrutiny for their high fees and interest rates, which have significant financial implications for American consumers. According to reports, these companies generate approximately $138 billion annually from consumers, translating to about $900 per household. They maintain a dominant market position with a combined market share of 80% and profit margins exceeding 44% for Mastercard and 55% for Visa. The Credit Card Competition Act (CCCA) has been proposed as a legislative measure aimed at increasing competition in the credit card market and addressing the high interest rates, which can reach up to 29%. Critics argue that these companies exploit the financial struggles of many Americans, who often rely on credit cards for basic necessities, leading to a collective debt of $1.2 trillion among consumers.