Sunflower State News

Small business owners and their customers are facing challenges due to rising credit card fees, which have reportedly more than doubled over the past decade. NFIB State Director Dan Murray highlighted these concerns in an op-ed for The Emporia Gazette, stating that the lack of competition in the credit card industry leaves no one exempt from these costs.

Murray pointed out that small businesses have little control over the fees imposed by credit card companies. He illustrated this with an example of a restaurant owner who can set menu prices but cannot influence the charges set by credit card companies. "That money goes straight from the small business owners’ hands to the bank that issues the credit card," he wrote.

Senator Roger Marshall has introduced legislation aimed at addressing this issue. The bipartisan Credit Card Competition Act of 2023 seeks to introduce competition into the market by requiring credit card companies to offer at least two networks on each card. This change is expected to allow small business owners to select more affordable options.

Murray emphasized that current economic conditions, including inflation and labor shortages, are already straining Kansas families and businesses. The ongoing increase in credit card fees further limits small businesses' negotiating power.

A business owner from Auburn shared his experience, noting that combined fees significantly reduced his profit margin. While some businesses absorb these costs without passing them onto customers, not all can afford this approach as fees continue to rise.

The call for Congress to pass the Credit Card Competition Act of 2023 aims to ensure real competition in the market, which could benefit Kansans by enabling small businesses to better serve their communities and create jobs.

Senator Marshall reintroduced this bill last week with support from NFIB President & CEO Brad Close and other senators during a news conference in Washington, D.C.