Small Business Boost: How Lower Credit Card Fees Will Help Save Money and Strengthen Communities

By Eleanor Harrison Mar27,2024
Tulsa Business Believes Visa and Mastercard Settlement Could Provide Relief for Small Businesses

Recently, Mastercard and Visa settled a $30 billion lawsuit that will lower fees for small businesses when customers pay with a credit card. This settlement comes after an anti-trust lawsuit filed against the two companies in 2005. For small business owners like Ashley Ryan, who owns Stash Apparel and Gifts on Brookside, this news is a positive development given the challenges of operating a small business in today’s economy.

Small businesses are required to pay a percentage of each transaction back to credit card companies whenever customers use a card to make a purchase. According to Ryan, most customers prefer paying with a credit card due to the convenience and rewards associated with it. Currently, businesses like hers pay about 3 to 4 percent for each transaction, which can add up significantly over time.

Ryan emphasizes the financial strain that credit card fees place on businesses, noting that the savings resulting from lower fees will be welcomed. She mentions how the preference for card payments among customers has a significant impact on the local community, as higher fees translate to more expenses for businesses. With expenses already high for small businesses, any opportunity to save money is seen as beneficial.

The approved settlement will impose a cap on the fees businesses pay until 2030, at which point both parties will have the opportunity to renegotiate. This development is expected to provide relief to small businesses like Ryan’s, allowing them to operate more efficiently and competitively in the market. Despite the challenges that come with running a small business, Ryan remains optimistic about the positive changes that lower credit card fees can bring to her business and the community.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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