Ask a small business owner about credit card processing fees and get ready … you’ve likely hit on one of their greatest frustrations.
It’s all due to a lack of competition. Big banks and credit card companies work hard to preserve their stranglehold of the credit card routing market.
By not having to compete with each other, they can keep raising costs and profiting off high card fees – while small businesses and consumers pay the price.
The Credit Card Competition Act would fix this broken market.
“ Visa and Mastercard are going to hike fees. At a time of inflation, that just seems like adding insult to injury to a lot of businesses out there. We don’t have a competitive (payments) system and many businesses cannot survive if they stop accepting Visa and Mastercard.”
Consumer Financial Protection Bureau Director
Rohit Chopra on CNBC