Grassley and Judiciary Committee can provide relief from ‘swipe fees’

In 2024, Senator Grassley — along with other members of the Senate Judiciary Committee — will have the opportunity to preserve the livelihoods of businesses across Iowa.

Despite being the cornerstone of Iowa’s economy, small businesses are finding themselves struggling to cover the increasing burden of credit card “swipe fees.” These fees — hidden costs that merchants incur every time a customer taps, inserts, or swipes a credit card — punish entrepreneurs for allowing customers to use credit cards as payment. This is forcing many businesses to pass added costs onto consumers, stop accepting cards, or close down shop.

Last year, major credit card networks swiped $130 billion from hardworking business owners through these fees. Visa and Mastercard — the two culprits behind this scheme — get away with it because they control 80% of the credit card arena. By forming a duopoly, Visa and MasterCard can raise these “swipe fees” with minimal pushback. It’s a bitter pill to swallow.

Luckily, pending legislation in Washington would put an end to this one-sided system. Known as the Credit Card Competition Act, the bipartisan policy would leverage the free market by giving small businesses more options for payment processing. By doing so, Visa and Mastercard would lower their own “swipe fee” rates, putting money back into the pockets of hardworking business owners and consumers alike.

I urge Senator Grassley to protect Main Street and support the Credit Card Competition Act.

Laura Cobb

Brighton