Small Business Owners Mobilize Against Durbin-Marshall Mandates
The Small Business Payments Alliance (SBPA) launched a new ad campaign this week featuring videos showcasing SBPA members and their small businesses. The videos highlight the value of credit cards for small businesses and the need to protect the existing electronic payments system.
Small businesses nationwide rely on credit cards to provide safe, secure and convenient payment processing that sustains their businesses and fuels growth. The Durbin-Marshall credit card bill destabilizes this system and threatens security, by mandating cards run on untested networks, exposing small businesses and consumers to increased fraud risks.
Theresa Bostic, co-founder of Kayla’s Italian Ice, called her credit card rewards “phenomenal for a small business” and said, “Those rewards points add up … I don’t think we’d be able to do it without those rewards points.”
Tammeca Rochester, owner of Harlem Cycle, said credit cards provide trusted payment solutions for her business, noting, “If you’re trusting me with your physical fitness, you want to trust me with your payment.” Rochester added credit cards are a lifeline for her business and allowing her clients to use autopay keep them accountable for their fitness goals.
Kenneth and Jeannette Flores Katz, owners of Buenos Dias Cafe, stressed the security of credit cards and noted that they shifted their business to cashless at local farmer’s markets for the safety of their employees. “Safety is a very important part for us and for our employees and we want to make sure that they don’t have to be worried about carrying cash,” said Jeannette.
TJ Tillman, owner of Outcast Doughnuts, noted the shift in the food and beverage industry to a more pickup and delivery-centric model since the pandemic, which would be impossible without credit cards. “One of the ways credit cards really really help us out is allowing us to utilize third party delivery platforms, so we can expand our delivery radius,” said Tillman.
The Durbin-Marshall credit card bill is set to be reintroduced in Congress, and the sponsors are pushing for a vote this year. The proposed legislation is a direct threat to the electronic payments and rewards system and would have a major negative impact on small business owners who use credit cards and rewards to run their businesses. The legislation would circumvent the competitive market with a new government routing mandate that would dictate processing networks, without regard to security or quality. A recent study revealed that the bill would “disproportionately benefit the top five businesses in the U.S.” while “costing small businesses over $1 billion in lost rewards as well as a decline in access to credit.”