JCN Calls Out Visa and Mastercard for Preparing to Raise ‘Swipe Fees’ on Small Businesses
Washington, D.C. (August 31, 2023)—Today, it was reported that Visa and Mastercard are preparing to raise the credit card “swipe fees” that businesses are charged every time a customer swipes, inserts, or taps a credit card. Last year, credit card companies and banks collected nearly $130 billion in “swipe fees”—an increase of 20 percent compared to the year before. The changes reported today are expected to cost businesses an additional $502 million per year .
Alfredo Ortiz, President and CEO of the Job Creators Network, released the following statement:
“Small businesses are struggling to cope with the realities of Bidenomics—and ballooning credit card ‘swipe fees’ are yet another financial burden that’s piling on. For many small businesses, credit card fees are the second highest operating expense behind labor costs—a problem that is only growing as Visa and Mastercard leverage their duopoly market position to inflate fees further. Today’s news is yet another sign that something needs to be done. Fortunately, bi-partisan federal legislation in the form of the Credit Card Competition Act has already been introduced to help tackle the problem. By using the power of the free market, the bill would foster competition within the credit card industry to drive down costs for small businesses.”