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Credit Card Competition Act Could Result in Annual Savings Upward of $17 Billion

CMSPI estimates that credit routing competition could have resulted in over $17 billion1 in annual interchange savings in 2024, up from $16.4 billion in 2023.

As reported in CMSPI’s 2024 State of the Industry Report, credit card fees account for over 70% of the total $224 billion in 2023 card fees paid, while credit cards account for an estimated 40% of total U.S. spending.2

Unlike the credit card market, debit card fees have been largely flat since 20123 - the result of interchange caps and network routing guarantees, which CMSPI estimates has introduced up to approximately $5 billion in annual savings for U.S. retailers and consumers. 

Based on state-level economic activity for calendar year 20244, CMSPI estimated each state’s total annual card fees, share of annual credit card interchange, and expected share of the $17 billion in savings.

Credit Card Competition Act: Estimated Savings and Fees by State
 

 

Sources

1 This analysis draws on publicly available data, including annual reports from covered global networks, and Federal Reserve reporting on average Interchange and public reporting on CCCA coverage. https://www.digitaltransactions.net/magazine_articles/where-the-ccca-goes-wrong/

2 WorldPay Global Payments Report (2024)

3 https://www.federalreserve.gov/paymentsystems/regii-average-interchange-fee.htm

4 https://www.bea.gov/data/consumer-spending/main