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Throughout our nation’s history, hard-working and dedicated small business owners have kept our economy thriving. But for years, these business owners have had to compete with giants like Walmart and Target. They come to town and often retreat their businesses away from Main Street and onto highway bypasses.
A bill introduced in Congress by Sens. Dick Durbin and Roger Marshall would make it harder for these mom-and-pop retailers to compete while lining the pockets of these megastores.
Durbin and Marshall claim their bill would “promote economic competition” by changing the credit card routing system as we know it. These route changes, they argue, will help small businesses and save families money. However, study after study shows that this is simply not the case.
Recent reports from the University of Miami revealed This legislation will have a devastating impact on small businesses, as they will bear the brunt of the proposed changes. In the meantime, Durbin and Marshall’s mega-store alliance will reap all the benefits.
The study found that the top 100 U.S. retailers could earn nearly $3 billion in profits, with the top five retailers alone – Walmart, Amazon, Costco, Kroger and Home Depot – paying out $1.2 billion. .
In case that wasn’t bad enough, the report also states that small businesses receive about $12 billion in rewards from credit cards if they shop on credit themselves, so small businesses are rewarded. It has also become clear that there is a high possibility of losing
Americans would lose compensation as well. Credit rewards programs would become too expensive, threatening the airline points and credit card rewards programs Americans have relied on. This will further strain the already strained finances of Americans.
Recent Congressional Research Service (CRS) reports I support Many of the University of Miami’s findings question the bill’s impact on small businesses, raising concerns that the new mandate could increase security risks to consumer data. By allowing retailers to cut costs and determine their own routes, the Durbin-Marshall Credit Act would prevent megastores from cutting corners on data security and exposing consumer data to bad actors. will make it possible. many times in the past.
Durbin has a long history of pushing harmful megastore-backed legislation. Let’s not forget the eerily similar 2010 Durbin Amendment. The amendment required the Federal Reserve to place limits on the exchange of debit card purchases and keep billions of dollars in the hands of the largest corporate retailers. His 2014 study by the Federal Reserve Bank of Richmond found that rather than using this wealth to assist customers as previously promised, Indicated Despite the interchange adjustment, more than 98% of companies raised or left prices unchanged.Another study from the University of Chicago Estimation After the policy went into effect, consumers reportedly lost about $25 billion.
But here we are again, doing the exact same thing. It is surprising that despite such overwhelming evidence, this bill is still being debated.
Small businesses and corporationsconsumer highly rated.
It’s time to end Durbin and Marshall’s disastrous bill once and for all.
