The current economic climate has forced Americans to pinch pennies any way they can. One of the most common ways individuals save money, but also make responsible investments, is building credit. Researching which credit card is right for you is a vital component in ensuring you’re making the smartest financial decisions. One of the greatest perks consumers look for in a credit card is the perks and rewards associated.
The Credit Card Competition Act is an ongoing debate in Congress. This legislation seeks to expand on an existing credit card policy that provided large retailers with a shocking profit increase. On the surface, more competition sounds like a great idea - but not at the expense of small business owners and consumers. Essentially, banks will be mandated to offer retailers two unaffiliated networks to process credit card transactions.
Those in support of the Credit Card Competition Act claim this will lower credit card fees. In theory, of course, that sounds like a great idea. However, the actual repercussions of this legislation are costly. If passed, these regulations will limit the ability of credit card companies to generate revenue- forcing them to find compensation elsewhere like raising fees and interest rates. Higher costs will drive consumers away from the businesses that have unfortunately been left with no choice.
Leaders in Washington should be doing everything in their power to protect the small business owners - the backbone of our economy. My daughter and son-in-law’s family own a convenience store and have experienced firsthand how tough today’s economic conditions have impacted small businesses. Credit cards offer small businesses, like theirs, flexibility in their expenses and purchasing. Stricter regulations will limit the types of credit cards that small businesses, such as theirs, can accept, which will drive consumers away and towards big box retailers, such as Walmart and Target, who can withstand such drastic changes.
The effects of the Credit Card Competition Act will negatively impact small businesses in Louisiana, such as our family’s, for many years to come. I urge US Senator John Kennedy and US Senator Bill Cassidy to protect Louisiana’s small businesses and consumers.
Quin Bates
Marrero, LA
