Lots of Legislation for the Credit Card Industry

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Just last month, the Senate passed a bill that gives consumers one free credit score from each of the agencies. Senator Sheldon Whitehouse pushed an amendment where states would be able to enforce their own rate limit on credit cards, regardless of where the credit card issuer is based.

Companies like MasterCard and Visa are already hurting from the Senate's recent intervention in swipe fees. These fees are a tax charged to merchants per transaction. According to a representative for Visa, the Senate's approval means good things for big franchises like Wal-Mart, and bad things for consumers who may be charged more by banks for services.

But according to Brian Dodge of the Retail Industry Leaders Association, Small businesses will benefit most from the Senate amendments. In his opinion, "Big banks and credit-card companies are not victims of the current political climate, they are the cause of it."

Regardless, credit card company stocks have fallen. Visa reported a loss of 6.2% in the New York Stock Exchange. MasterCard fell 3.8%, and Discover Card fell 5.3%. American express had the slightest drop with a 3.4% decline.

Update: Credit Card Interest Rate Measure-Rejected

A measure that would lower credit card rates was rejected by the Senate last month. Had the measure passed, it would require that banks and card issuers abide by state interest rate caps. The senate rejected the measure in a 60-35 vote. The measure was presented as an amendment to a broader financial regulation bill by Dem. Sen. Sheldon Whitehouse of Rhode Island. Had this amendment passed, it would have kept financial institutions from basing interest rates on state allowances.