SBPA Members Head to Capitol Hill to Underscore Negative Consequences of Durbin-Marshall Credit Card Bill
Washington, DC – Members of the Small Business Payments Alliance (SBPA) headed to Capitol Hill this week to highlight the importance of credit cards and the need to protect the existing electronic payments system. Small business owners depend on credit cards to grow sales and expand their reach, and they oppose the Durbin-Marshall credit card bill that would threaten security, access and benefits. This week’s visit by members of the SBPA was the group’s third Capitol Hill fly-in over the past several months.
“Small business owners depend on credit cards to stay in business, and they see Durbin-Marshall as a threat to that system. SBPA members are in Washington this week to let Congress know that mega corporate retailers don’t speak for small business owners,” said SBPA Spokesperson Peter Kauffmann.
Research Underscores the Importance of Credit Card Acceptance for Small Businesses. Study after study clearly shows that small businesses earn greater income when customers use credit cards. Credit card transactions guarantee payment and avoid the costs and risks associated with cash (such as errors in counting, storing, transporting, and safeguarding). Credit cards also create opportunities for small businesses by granting access to e-commerce and mobile commerce channels, which are growing rapidly as more and more customers take advantage of online purchasing.
- Small business owners earn 220% more on an average credit card transaction compared to cash.
- In 2022, credit-card purchases averaged $95 per transaction compared to an average of $39 per transactions for cash purchases.
- The size of an individual transaction typically decreases when a consumer uses a payment form other than a credit card.
- When a merchant begins accepting card payments, they experience a 10% – 15% increase in average transaction size.
- The cost of processing cash payments can add 10% to overhead costs for a small business.
- Credit transactions can be processed two times as fast as cash transactions.