The washington time published an editorial written by Jeff Brabant, Director of Federal Government Relations for the NFIB, who explains how credit card companies continue to increase credit card swiping fees and how the Credit Card Competition Act 2022 would give small businesses real choices for the first time.
“The credit card fee crisis has been building for years, but in the wake of the pandemic it is worse than ever,” Brabant wrote. “Small businesses and customers are reeling from inflation, with price increases the inevitable result of labor shortages and supply chain issues. ‘huge credit card companies have shockingly decided to increase the fees they charge small businesses and customers. This adds insult to injury from inflation at the worst possible time, costing money. money Main Street needs to survive.
Swipe fees have more than doubled since 2012 and the problem has been exacerbated by pervasive inflation, which acts as a multiplier as swipe fees are a percentage of each sale. Small businesses don’t have the power to negotiate with big credit card companies over swipe fees, so Congress is considering legislation to introduce crucial competition to the marketplace.
“Right now, Congress is considering bipartisan legislation calledCredit Card Competition Act 2022“, Brabant wrote. “Credit card companies would need to offer at least two networks on each credit card, which necessarily means offering different fee structures. For the first time, small businesses would have multiple options to choose from and could choose the most affordable option. Plus, credit card companies should finally compete for business, just like small businesses have to compete for customers.
NFIB has written letters of support for HR 8874 and S.4674the House and Senate versions of the Credit Card Competition Act 2022to help move this important legislation forward.
“The Credit Card Competition Act 2022 with Congress should make sure it finally happens now,” Brabant wrote. “If the status quo continues, Main Street struggles will continue to escalate, stifling the economic recovery of small businesses. It’s the last thing America needs, so Congress should prioritize cutting costs and increasing the choices small businesses deserve and demand from customers.
Take action: Tell Congress to cap credit card swiping fees and allow small business owners to choose between credit card networks.