Todd Zywicki on Credit Card Fees

Forbes – ICLE Academic Affiliate Todd Zywicki was cited by Forbes in a story about the Credit Card Competition Act of 2023. You can read full piece here.

The government is creating a game of whack-a-mole: Increased competition in one sector will lead to diminished competition in another. As Todd Zywicki, professor at George Mason University’s Antonin Scalia Law School, recently wrote:

“By artificially pushing down interchange fees on credit cards, the bill would curb an important revenue stream for banks. Larger banks, which have gotten even bigger since Dodd-Frank was enacted, could offset such losses by selling investment advice, mortgages and other products—or by imposing new fees as they did in response to the original Durbin amendment. Small banks lack these revenue streams and would have to raise fees, curtail services or merge, fueling industry consolidation.”