Mounting credit card “swipe fees” are plaguing businesses throughout the Garden State. Soon, the Senate Judiciary Committee will hold a hearing on a policy that could throw beleaguered business owners a lifeline.
When customers use credit cards for transactions, businesses are required to pay a fee to the bank and the credit card company. In 2022, these fees extracted a staggering $130 billion from retailers and consumers. Small businesses like mine are forced to pass those costs on to consumers, increasing the price of gas for everyone.
The problem lies in a lack of competition. VISA and Mastercard control a commanding 80% of the credit card market. Their duopolistic control in the payment sector empowers them to raise these “swipe fees” without facing significant backlash.
Fortunately, federal lawmakers have the chance to advance the Credit Card Competition Act — a bipartisan initiative poised to improve the payment landscape for small businesses. The legislation would inject competition into the credit card market to lower costs. For the majority of New Jersey businesses, this change cannot come soon enough.
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I urge Sen. Cory Booker to champion the Credit Card Competition Act, ensuring a fair playing field for businesses in New Jersey.
Tim Arata
The writer owns Westview Service Station in Ridgefield Park.
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