The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com.
Small businesses are the cornerstone of the Wisconsin economy, employing roughly 1.2 million state residents. While entrepreneurs like me are used to facing hurdles—from attracting customers to our brick-and-mortar location to on-line competition to wholesale price increases—one burden in particular has become a major expense.
All businesses must pay what’s called a “swipe fee” every time a consumer makes a purchase with a credit card. The hidden expense amounts to between two and four percent of the total sale. For many small businesses, “swipe fees” are the highest operating expense behind labor costs and rent.
Merchants paid a staggering $148 billion in “swipe fees” for credit cards in 2024. Community-oriented shops like mine—which operate on small margins and compete against major retail chains—often have no choice but to pass these added costs on to consumers. Although my store has chosen not to pass these costs on yet, a third of U.S. small businesses have added credit card surcharges to their transactions.
>> WisPolitics is now on the State Affairs network. Get custom keyword notifications, bill tracking and all WisPolitics content. Get the app or access via desktop.
The impact on consumers is glaring. It was found that the average American family pays an additional $1,200 annually thanks to price hikes associated with “swipe fees.”
The soon-to-be-reintroduced Credit Card Competition Act can help small businesses and families affected by “swipe fees.” The legislation would inject much needed competition into the credit card industry. How? The measure would require big banks with over $100 billion in assets to include a second processing network beyond Visa and Mastercard on the credit cards they issue to customers.
In practice, this would provide small businesses more options on how to process credit card transactions—which could result in increased competition and a decrease in “swipe fees.” The legislation not only enjoys bipartisan backing but is a policy that 79 percent of small businesses nationwide support, according to April polling from the Job Creators Network Foundation.
Small businesses are the fuel that keeps Wisconsin’s economic engine running. Our state’s elected leaders in Washington should support the Credit Card Competition Act to help Main Streets across the state.
Carol Blizzard Dunn is the owner of Northwind Book & Fiber in Spooner, Wisconsin.
