NHPA Signs On in Support of Credit Card Legislation

Several independent retail organizations, including the North American Hardware and Paint Association (NHPA), have signed a letter in support of the Credit Card Competition Act (CCCA), legislation that would enhance competition and choice in the credit card network market. 

Small Business Rising, a coalition of small business membership associations representing more than 200,000 independent businesses, has authored the letter, which will be sent to co-sponsors of the bill to thank them for their helping small businesses and show their support for the legislation. 

The CCCA aims to reduce credit card interchange fees, also known as swipe fees, and create a more competitive environment for merchants accepting credit cards as payment. Currently, Visa, MasterCard and American Express own the market, with four banks—Chase, Wells Fargo, Citi and Bank of America—issuing nearly half of all credit cards.  

In the letter, Small Business Rising states, “this ‘duopoly’ power must be addressed through legislation like the Credit Card Competition Act, which will prevent Visa and MasterCard from forcing merchants to use their card networks to process payments, resulting in significant fee reductions for small businesses.”

According to the Nilson Report from March 2023, merchants paid $160.7 billion in swipe fees for both credit and debit cards, up from about $138 billion in 2021. Small Business Rising reported that its business members report swipe fees are their highest expense after payroll. 

The letter also says “concentrated market power is the single biggest threat facing independent businesses, and it has become clear we have a financial system that benefits behemoth corporations at the expense of ordinary people and small businesses.”

The bill is sponsored by Sen. Dick Durbin (D-IL) and includes the following co-sponsors. Click the links to contact these legislators and express your support for this legislation. 

• Sen. Doc Marshall (R-KS)
• Sen. J.D. Vance (R-OH)
• Sen. Peter Welch (D-VT)
• Rep. Lance Gooden (R-TX-5)
• Rep. Zoe Lofgren (D-CA 18)
• Rep. Tom Tiffany (R-WI 7)
• Rep. Jefferson Van Drew (R-NJ 2)