Tell Congress to support the Credit Card Competition Act.
The Credit Card Competition Act will not end rewards programs.
Only the banks that offer those programs can make that decision.
Secure and cost-effective payment routing networks are used now for debit cards.
The legislation states that issuing banks must enable one competing network on their credit cards — in addition to Visa or Mastercard — that they decide upon.
Competition in the credit card market would greatly benefit small retailers.
Small retailers currently pay higher swipe fee rates than larger competitors and have the least leverage to push back on higher fees from the networks and large banks.
Every time a card is swiped, a Wall Street bank profits off small businesses and consumers.
That’s because two companies control 80% of the current market, setting the fees charged by all banks that issue their cards, along with the terms for usage — forcing merchants to foot the bill. That means small businesses have no choice but to pay non-negotiable fees or incorporate the high swipe fees into the prices consumers pay.
Big banks are working to raise credit card swipe fees even higher, which will only make it more challenging for small businesses to expand, hire new employees, and lower prices at a time of high inflation. It’s time for Congress to act.
Relief from excessive and unfair credit card swipe fees cannot wait
These reforms have the potential to save American businesses and consumers an estimated $15 billion per year.
- The average American family pays an extra $1,100 annually because of the rising cost of swipe fees, regardless of whether they even use a credit card.
- Credit card swipe fees are most retailers’ highest operating cost after labor — preventing them from investing in their businesses by hiring more staff, buying more inventory and competing on price.
- U.S. retailers and merchants pay the highest swipe fees in the world — $135.8 billion in swipe fees were paid by businesses for credit card transactions in 2023, a new record high.
- 81% of consumers support federal legislation that would allow for greater competition to lower credit card fees for small businesses.
- 73% of Americans trust small businesses over big banks when it comes to advocating for policies that impact consumers.
- Just 21% of consumers believe that credit card companies are honest and trustworthy when they advocate before Congress on the fees they charge retailers to accept their cards.
A fair solution
The bipartisan Credit Card Competition Act would infuse competition into the marketplace by simply requiring there be at least two competing processing networks enabled on each credit card.
These reforms have the potential to save American businesses and consumers an estimated $15 billion per year.
Are you a small retailer that’s fed up with swipe fees?
Help us spread the word
Show your support for the Credit Card Competition Act by displaying our educational signage at your store. We have window clings for storefronts, easel signs to display at checkout and flyers to share with customers.
Sign up today to spread the word and advance swipe fee reform!
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