WASHINGTON–The National Federation of Independent Businesses is coming off the sideline and staking a position in favor of the Credit Card Competition Act, saying passage is now one of its priorities.
The new advocacy comes as the country’s retailers and merchants are heading to Washington just a week after thousands of credit union representatives hiked Capitol Hill in conjunction with America’s Credit Unions’ Governmental Affairs Conference, where they expressed strong opposition to that same legislation.
Number-Three on Top 10 List
In its new “Top 10 Small Business Policy Priorities” for 2024, the NFIB has named as its third priority, “Increase competition in the credit card network marketplace and stop mega banks and credit companies from using anti-competitive practices that hurt small businesses.”
In a statement on its website in favor of the bill, the NFIB says, “Swipe fees for small businesses are commonly as high as 3-4% of every transaction. These fees are set in an anti-competitive fashion by a limited number of massive credit card companies. NFIB supports the Credit Card Competition Act because it would inject competition into the credit card network marketplace and make mega banks and credit card companies compete on pricing just like small business owners do every day.”
Short-Sighted Position
“NFIB is being unfortunately short-sighted,” said John McKechnie, who advocates for credit unions on Capitol Hill. “Embracing price controls may give them a sugar high now, but longer-term it cuts against the free-market ethos that small businesses usually support.”
Could be Costly
During a panel discussion at ACU’s Governmental Affairs Conference last week, the interchange legislation was the topic of much discussion. One executive with Visa also indicated that the NFIB’s position may be costly for many of its small business members, noting that in some cases new POS systems may need to be purchased to comply with what some are seeking.