From tariffs to inflation, Georgia small businesses already have enough to worry about as they are being squeezed from every possible side. Unfortunately, exceedingly high credit card swipe fees are yet another financial burden they’re forced to contend with, leaving businesses on Main Street struggling to make ends meet. And what’s more, this problem is only getting worse, showing no signs of slowing down without intervention from Congress.
The lack of serious competition in the payment industry has allowed Visa and Mastercard to extend their control over the payments industry. Now, those two financial giants control more than 80 percent of the market, allowing them to hike their swipe fees at their pleasure, extracting billions from American businesses with little to no pushback. These fees have been increased to such a level in recent years – rising over 70% since COVID – that many businesses have to raise prices or face the prospect of closing their doors for good.
The status quo needs to change, and it needs to change soon. In Georgia, small businesses make up 99.6 percent of all Georgia businesses and account for over 1.7 million jobs. Over 42 percent of all Georgia employees are employed by small businesses. Why would our elected officials not take measures to ensure we are fighting for those who are just trying to make ends meet and are the backbone of our economy?
Luckily, there’s a chance to do just that with the Marshall-Durbin Amendment that was recently introduced to the GENIUS Act and is soon to come under consideration in the U.S. Senate. This amendment would, if passed, allow merchants to choose between two or more credit card networks when processing a payment. The result would be simple: this legislation would create more competition in the payments market.
Expanded choices would incentivize Visa and Mastercard to lower their swipe fees to stay competitive, breaking their duopoly and providing Georgians with some relief. The savings for merchants would help them give their employees raises, lower prices, and focus on expanding their businesses instead of worrying about keeping the lights on. It’s important to remember it isn’t just small businesses stuck shouldering the burden. Oftentimes it is also consumers who are stuck paying higher prices and footing the bill for Visa and MasterCard’s sky-high fees.
When the Marshall-Durbin Amendment comes to a vote, I hope Sen. Jon Ossoff will support its passage along with a final vote for the GENIUS Act. The stakes could not be any higher. Merchants, workers, and consumers are all making their voices heard and supporting lower swipe fees and more competition. We need Senator Ossoff to do the same.
Senator Ossoff has long been a champion of Georgia’s entrepreneurs and small businesses, and he’s made a name of standing up for David in his battle against Goliath.
Swipe fees have been a problem for too long, and it’s time for Wall Street’s exploitation of small businesses to come to an end. We’re counting on Senator Ossoff to carry that message to Washington.
Jennifer Shannon is a pharmacist and the owner of Lily’s Pharmacy in Johns Creek, Ga.
