Small Businesses Get Swiped During Fourth of July Celebrations

Washington, D.C. (June 26, 2024)—Ahead of next week’s Fourth of July celebrations, the Job Creators Network (JCN) is calling out the impact that credit card “swipe fees” will have on the small business community. Americans are expected to buy everything from fireworks to hotdogs for the holiday—instances in which retailers will be on the hook to pay credit card companies and big banks what is effectively a “transaction tax.” 

The payments arena is currently dominated by Visa and Mastercard, which leverage their duopoly market position to absorb more than $100 billion annually from the scheme. That’s $7.5 billion more compared to the year before. More specifically, if history is any indication, “swipe fees” could amount to over $500 million during this year’s Fourth of July festivities.   

Bipartisan legislation has already been introduced in Congress that would help remedy the lack of competition. Called the Credit Card Competition Act, the bill would accomplish exactly what the name suggests: foster more free market competition within the payments arena. It’s a proven strategy that will lower costs for Main Street. 

Alfredo Ortiz, Chief Executive Officer of the Job Creators Network, released the following statement:

“As Americans enjoy patriotic celebrations over the Fourth of July, small businesses will continue to get hosed by credit card companies and big banks. Visa and Mastercard’s domination of the payments arena has led to ‘swipe fees’ becoming the second highest operating expense for small businesses behind labor costs. Lawmakers need to prioritize Main Street over Wall Street by passing the Credit Card Competition Act this year.”