Small Business Owners Rally Around Swipe Fee Reform

In an effort to ensure swipe fee reform passes Congress and is signed into law, more than 100 small business owners from across the U.S. went to Washington, D.C. today to join Congressman Peter Welch (D-VT) for a press conference about swipe fee reform.

"Small business owners in Vermont and around the country are suffering from out-of-control swipe fees charged by big banks and credit card companies," Congressman Welch said.

"Congress must stand up to the special interests swarming the Hill this week to kill the Durbin amendment. We must do the right thing by fighting for small businesses and the American consumer."

Swipe fees are on the average 2 percent of the total transaction cost that credit card companies and their member banks collect from U.S. retailers, local governments, small businesses, charities and universities, every time they accept a credit or debit card as a form of payment.

The U.S. currently pays the highest swipe fees in the world – with rates that have tripled in less than a decade.  Reform would help small businesses to grow, offer better pay to their employees, and pass savings on to their customers.

Rates are set by credit card companies and can be increased at anytime. Most recently Visa increased rates by 30 percent in April. Swipe fees associated with debit card transactions can be as much as 43 times higher than those associated with paper check transactions.

"I have owned my small business for almost four decades. Year after year, I have seen the effect of these fees firsthand. Last year Visa and MasterCard made more off of my store than I did. And I never once saw anyone from Visa or MasterCard mopping the floor, washing the windows, or taking inventory.  No – they just want to take money from my cash register," said National spokesman for Reform Swipe Fees NOW! and 7-Eleven franchise owner, Dennis Lane. 

"The facts are on our side against the massive lobbying campaigns by Visa and MasterCard.  All Congress needs to do now is include the provision as part of financial reform, and small businesses and consumers will see relief."