WASHINGTON, DC — Today small business leaders and advocates joined together for a virtual press event urging support for the Credit Card Competition Act — legislation aimed at injecting competition into the credit card processing industry and addressing the Visa/Mastercard duopoly, which has resulted in skyrocketing swipe fees for independent businesses. More than 30 Small Business Rising coalition members sent a letter to Congress urging passage of this bill.
The event was hosted by American Economic Liberties Project, Americans for Financial Reform, Institute for Local Self-Reliance, Small Business Rising, and featured small business leaders from the National Grocers Association and the Independent Restaurant Coalition.
“Our profit margins in our industry are notoriously razor-thin. So, if we have a good year, we’re looking at maybe five to six percent profit and when two to three percent of our top line go a credit card processing fee for which we really don’t see any benefit, it’s a significant impact on our overall economic health.”
— Cheetie Kumar, Chef at ajja in Raleigh, NC and board member for the Independent Restaurant Coalition“Texans are paying an average of $1,000 each year per family on swipe fees — a hidden tax. For my customers, that’s a lot.”
— Hamdy Shalabi, El Rio Grande Latin Market in Dallas, TX and member of the National Grocers Association.
Speakers Included:
Renita Marcellin, Legislative and Advocacy Director at Americans For Financial Reform
Hamdy Shalabi, El Rio Grande Latin Market in Dallas-Fort Worth TX, representing National Grocers Association
Cheetie Kumar, Chef of ajja in Raleigh, NC, representing the Independent Restaurant Coalition
Lisa Dell’Alba, convenience store owner from Bethlehem, PA, representing the Merchant Payments Coalition
Lauren Gellatly, Institute for Local Self-Reliance and Small Business Rising
Morgan Harper, Director of Policy and Advocacy at the American Economic Liberties Project
Doug Kantor, General Counsel, National Association of Convenience Stores
For additional resources on how credit card swipe fees are mobilizing small business and consumer groups to support the anti-monopoly moment:
In the American Prospect, ILSR’s Co-Executive Director, Stacy Mitchell, explains how increased swipe fees got shopkeepers mobilized, and could further an anti-monopoly revolution.
ILSR published a fact sheet explaining how credit card monopolies and banks are imposing swipe fees — what is essentially a monopoly tax — to rake in profit at the expense of small business and consumers.
Image source: Small Business Trends