Wisconsin Small Businesses Advocate for Credit Card Competition Act Amid Rising Swipe Fees
Spooner, WI – Carol Blizzard Dunn, owner of Northwind Book & Fiber, recently highlighted the growing burden of credit card “swipe fees” on small businesses in Wisconsin, crucial to the state’s economy. With approximately 1.2 million residents employed by small enterprises, these fees, ranging from 2% to 4% of each transaction, have become a significant operating expense for many.
In 2024, American merchants collectively paid around $148 billion in swipe fees, with small businesses, which often operate on slim margins and compete with larger retailers, feeling the sting most acutely. Dunn revealed that while her store has not yet passed these costs onto customers, a significant number—over a third—of small businesses have resorted to implementing credit card surcharges, directly impacting consumers. Research suggests that the average American family incurs an additional annual expense of $1,200 due to these fees.
To alleviate this burden, the reintroduction of the Credit Card Competition Act is anticipated. The proposed legislation aims to foster competition within the credit card industry by requiring major banks (those with over $100 billion in assets) to offer customers a choice of processing networks beyond the current dominance of Visa and Mastercard. This change would provide small businesses with more processing options, potentially reducing swipe fees.
The act enjoys bipartisan support, with 79% of small businesses across the nation backing the proposed reforms. Dunn is calling on Wisconsin’s elected officials to stand behind this critical legislation to ensure the survival and flourishing of Main Street businesses across the state.
As small businesses remain the backbone of Wisconsin’s economy, supporting such measures could be vital for both entrepreneurs and consumers alike.
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