VISA and Mastercard are expected to raise the fees merchant pay when consumers use their credit cards in October and April of next year. This increase in fees comes at a time when scrutiny over credit card policies are ramping up and at a politically fraught moment for the industry as the credit card competition Act proposal is pending on Capitol Hill. Lawmakers sent a letter on Tuesday to the credit card giants asking them to reverse their position.
If the card network fee increases, it would hurt merchants at a time when most small businesses are struggling to keep up with rising prices and inflation. Estimated fees paid by merchants amounted to $93 Billion last year, up from $33 billion in 2012. On one side you have card networks arguing that these fees pay for customer rewards, and cybersecurity that protects consumers’ data and on the other side you have merchants who feel the rope tightening on their budgets.
As we watch the congressional fight over the fees, and the progress of the Credit Card Competition Act proposal on Capitol Hill unfolds, we continue to develop solutions for businesses like yours to take control of your business expenses and help grow your business. For more information on how we can help, contact us today!