The Small Business Rising coalition and the Institute for Local Self-Reliance released the following statement in response to the Department of Justice (DOJ) Antitrust Division’s lawsuit against Visa for illegally punishing or threatening to punish merchants with higher fees if they try to use competing services to process debit card payments.
More than a dozen independent business associations representing thousands of Main Street businesses have urged the U.S. Federal Trade Commission to revive Robinson-Patman Act enforcement. READ FULL LETTER.
“The undersigned organizations representing thousands of small businesses across our country write urging the Federal Trade Commission (FTC) to use long-dormant regulatory powers to address predatory buying practices from dominant corporations by enforcing the Robinson-Patman Act (RPA). The responsibility to ensure fairness in our markets for both consumers and small businesses is vital for a functioning democracy. And we’re running out of time.
Washington, DC – Today, the New York State Assembly and Senate took important steps to level the playing field for small businesses by advancing the 21st Century Antitrust Act. The bill would usher in much needed reforms to the state’s existing antitrust laws and would place New York at the forefront of a movement to rein in corporate power and create a fair, open marketplace for independent businesses.
10+ independent business organizations and small business advocates endorsed the bill, including:
More than 20 independent business associations wrote to United States financial regulators and the Department of Justice urging them to block the proposed merger between Capital One and Discover. Small Business Rising coalition partners have identified soaring credit card swipe fees as a key pain point for small businesses, with merchant swipe fees often ranking as the highest business expense after payroll. In addition to urging the Capital One and Discover merger to be blocked, coalition partners have advocated for Congress to pass the bipartisan, bicameral Credit Card Competition Act.
The Small Business Rising coalition and the Institute for Local Self-Reliance released the following statement in response to the Department of Justice (DOJ) Antitrust Division’s lawsuit against Visa for illegally punishing or threatening to punish merchants with higher fees if they try to use competing services to process debit card payments.
Small Business Rising coalition allies continue to advocate for Congress to pass the Credit Card Competition Act to rein in sky-high swipe fees for small businesses and consumers driven by the VISA and Mastercard credit card processing duopoly. Dozens of small business groups urged Congress to pass this important legislation earlier this year, and coalition members continue voicing their support through local media in communities across the country — from San Jose, CA to Charleston, SC.
In “Rising credit card fees are overwhelming our businesses” published in Cambridge Day, authors Theodora M. Skeadas, Pooja Paode, and Christy Zheng from Cambridge Local First share how the impacts of the credit card duopoly are particularly impacting Massachusetts businesses because the state is one of two states where businesses are prohibited from passing swipe fees along to customers. The piece highlighted local business owner statements, including Cambridge Local First member Kari Kuelzer, owner of Grendel’s Den and The Sea Hag as saying “If I didn’t have to pay swipe fees, I could pay for the wage of an additional employee”.
Doug McCarthy, CEO of Local First La Plata (Colorado) published an Op Ed in The Durango Herald urging elected officials to pass the Credit Card Competition Act and citing Small Business Rising's support. “Weak antitrust enforcement has allowed consolidation of market power in many industries, which disadvantages small businesses that create the lion’s share of new jobs in the United States,” said McCarthy.
After attending a meeting with Lowcountry Local First staff to share her story with South Carolina Senator Lindsey Graham’s office, florist Toni Reale, owner of Roadside Blooms in North Charleston, SC publish an Op Ed in The State urging SC lawmakers to pass the Credit Card Competition Act and detailing her small business spent more than $30,000 the previous year, which could have been used toward hiring an additional employee. (Full text available on the LLF site)
Sue Warfield, President of the American Specialty Toy Retailers Association (ASTRA), and Lauren Gellatly, Senior Advocacy and Campaigns Manager at the Institute for Local Self-Reliance, co-authored an Op Ed in the San Jose Spotlight focusing on the legislation’s potential benefits for small businesses.
The voices may come from different communities, but the stories are similar. Swipe fees imposed by these companies are significantly higher — typically two to three percent of a sale — than the actual cost of processing transactions, which averages around 3.6 cents. The lack of competition created by VISA/Mastercard’s market power allows these corporations to extract a monopoly rent from every sales transaction at every small business. It’s time to pass the Credit Card Competition Act to take a step toward leveling the playing field.
Small Business Groups Urge Senate Judiciary Committee to Pass Credit Card Competition Act — Small Business Rising partners, February 5, 2024.
Fact Sheet: Credit Card Swipe Fees — A Hidden Monopoly Tax on Small Businesses and Shoppers — Institute for Local Self-Reliance, June 20, 2023.
Merchants Payment Coalition is made up of trade associations and “dedicated to fighting unfair credit and debit card fees and advocates for a more competitive and transparent payments system.”
LowerCreditCardFees.com — A diverse group of organizations representing workers, small businesses, competition and consumer advocates, launched a new ‘Lower Credit Card Fees’ Coalition to dispel myths surrounding the bipartisan Credit Card Competition Act (CCCA) and urging Congress to pass it.
Photo source: Merchants Payments Coalition
More than a dozen independent business associations representing thousands of Main Street businesses have urged the U.S. Federal Trade Commission to revive Robinson-Patman Act enforcement. READ FULL LETTER.
“The undersigned organizations representing thousands of small businesses across our country write urging the Federal Trade Commission (FTC) to use long-dormant regulatory powers to address predatory buying practices from dominant corporations by enforcing the Robinson-Patman Act (RPA). The responsibility to ensure fairness in our markets for both consumers and small businesses is vital for a functioning democracy. And we’re running out of time.
Washington, DC – Today, the New York State Assembly and Senate took important steps to level the playing field for small businesses by advancing the 21st Century Antitrust Act. The bill would usher in much needed reforms to the state’s existing antitrust laws and would place New York at the forefront of a movement to rein in corporate power and create a fair, open marketplace for independent businesses.
10+ independent business organizations and small business advocates endorsed the bill, including:
More than 20 independent business associations wrote to United States financial regulators and the Department of Justice urging them to block the proposed merger between Capital One and Discover. Small Business Rising coalition partners have identified soaring credit card swipe fees as a key pain point for small businesses, with merchant swipe fees often ranking as the highest business expense after payroll. In addition to urging the Capital One and Discover merger to be blocked, coalition partners have advocated for Congress to pass the bipartisan, bicameral Credit Card Competition Act.
The American Booksellers Association along with a dozen Small Business Rising coalition partners and hundreds of independent businesses, have declared March 20, 2024 as “SBA: Dump Amazon Day.” The Day of Action is to show opposition to the United States Small Business Administration's partnership with Amazon during its annual celebration of small businesses, National Small Business Week (NSBW), happening this year April 28 - May 4, 2024.
The below undersigned organizations from Small Business Rising — a coalition of small business membership associations representing more than 300,000 independent businesses — are writing to show our support for the bipartisan, bicameral 2023 Credit Card Competition Act (S.1838) and to underscore the urgency for Congress to pass this legislation. With the upcoming Senate Judiciary committee hearing, we urge you to heed the calls of the small business community for this lifeline, which would spur competition and curtail the outsized power of the big banks and dominant credit card companies.
Washington, DC — More than 20 partners of the Small Business Rising coalition—representing hundreds of thousands of small businesses nationwide—released a letter to the U.S. Small Business Administration (SBA) showing their disappointment with the agency’s past financial partnerships with monopolies—such as Amazon, Google, and Visa—for National Small Business Week (NSBW). The letter urges the agency to enlist partners who are aligned with its mission to help Americans start, grow, and build resilient businesses, not mega-corporations that use their power and dominance in the market to stifle competition from smaller competitors.
“As a coalition representing the interests of small and independent businesses across the country, we believe that the DOJ’s Antitrust Division work under AAG Kanter’s leadership has been crucial for fostering a fair and competitive marketplace and safeguarding the right of small and independent business to compete and serve the needs of their communities. We urge Congress to work collaboratively to ensure the DOJ’s Antitrust Division has the resources and support to pursue its mandate to promote economic competition through enforcing and providing guidance on antitrust laws and principles.
