3-minute read

• The Credit Card Competition Act (CCCA) aims to reduce credit card swipe fees charged to small businesses.
• New Jersey small businesses paid over $3 billion in swipe fees in 2023, impacting consumers through increased prices.
• The CCCA would introduce competition among credit card networks, potentially saving New Jersey businesses and consumers $475 million annually.
• Passing the CCCA is urged to lower costs for businesses and consumers nationwide.

New Jersey residentss are still anxiously awaiting the significant financial relief that was promised on the 2024 campaign trail. Providing economic relief and helping out mom and pop businesses are a cornerstone of sensible policy and the type of kitchen table issues that matter to us as voters. And with Americans more concerned about the economy than ever before, having Senators like Andy Kim and Cory Booker who can help quickly pass legislation like the Credit Card Competition Act will help address those anxieties by boosting small businesses and reducing costs for consumers.

The Credit Card Competition Act, or CCCA, will lower the out-of-control credit card swipe fees levied on small businesses by big banks and card companies. Here in New Jersey, small businesses paid over $3 billion in swipe fees in 2023 alone, with swipe fees across the United States more than tripling over the last decade. This unprecedented increase in fees is the direct result of Visa and Mastercard’s dominance of the payments industry. 

In the absence of serious competition, Visa and Mastercard have taken it upon themselves to raise swipe fees repeatedly. Meanwhile, merchants have been forced to pass on those higher fee payments to consumers in the form of increased costs. Unlike credit card executives, however, ordinary Americans aren’t made of money. New Jersey households already spend 32% more than the national average on everyday bills and costs, and an added burden from swipe fees only puts unnecessary strain on the state’s economy. American families are paying on average more than $1,100 a year in higher prices as a result of swipe fees. After four years of historic inflation, we simply can’t afford that.

If Congress wants to reduce costs for businesses in the Garden State and nationwide, it should vote to pass the Credit Card Competition Act which has received overwhelming support from the public, a variety of merchant associations, and even the Teamsters and the SEIU, some of America’s largest unions.

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This legislation will let merchants choose between a minimum of two different credit card networks when processing a payment, providing an avenue for more competition in the payments industry and giving Visa and Mastercard an incentive to lower their swipe fees in order to remain competitive. A drop in fees would result in significant savings, upward of $475 million for New Jersey businesses and consumers annually. Saving on swipe fees means more funds to improve wages, hire more staff, and lower prices on goods and services.  

It’s time to move past the campaign promises and finally tackle issues that are actively increasing costs. I hope Sen. Andy Kim and Sen. Cory Booker will support passage of the Credit Card Competition Act and exemplify the support this bill has already received. Swipe fees don’t discriminate by party, and lowering costs for Americans should be a top priority for every member of Congress.

Joseph Allegre is owner of Supreme Team Barber Lounge in Hazlet.