BIG FEES: Business Owners Asking To Lower Credit Card Fees
More people are shopping with plastic instead of cash, and while retailers are happy to have people spending money, small business owners say they are being hit with extra fees when folks use credit cards.
Iowa small business owners are asking lawmakers to lower those fees because they believe it would benefit everyone.
“I think any time a fee is down, it benefits the small business owner. We’re all just kind of trying to make it work, especially during the holiday season; we might see 10 customers or a thousand. So you have to plan for anything that could happen, but lower fees absolutely could benefit all of us I think,” said Natalie Brown of Scratch Cupcakery.
She says her business has to pay a swipe fee every time a customer uses a credit or debit card.
Two years ago congress passed a bill to help lower those fees, but that still didn’t solve the problem for many small businesses.
Jay Hansen of Hansen’s Farm Fresh Dairy says, “If we can implement accepting of the cards without increasing our prices to pay for it, we’re going to go with it. We’re assuming we’ll have an increase in purchases to generate income to pay for use of the cards.”
The Iowa Retail Federation is lobbying for a bill that would ban banks from charging transaction fees.
The group says fewer fees would help companies grow and expand in Iowa.