The following content is Small and Medium Enterprise Payments Alliance.
This week, a group of small business owners from across the country marched to the Capitol to voice their opposition to the Durbin-Marshall Credit Card Act. Small and Medium Enterprise Payments Alliance The SBPA is a coalition of independent companies that understand the value of electronic payment systems to businesses and consumers.
The group’s visit followed the release of a report on the importance of credit cards and electronic payments to small businesses. New survey of small business owners It found that an overwhelming majority believe the proposed Durbin-Marshall regulation is unnecessary government regulation that benefits big corporate megastores at the expense of small businesses.
Small business owners are concerned about the proposed Durbin-Marshall Credit Card Act because it could circumvent competitive markets with new government “routing mandates” that would dictate processing networks without regard for security or quality. A recent study found that the bill “benefit disproportionately “Top 5 Companies in the United States” and “Costs for Small Businesses This resulted in more than $1 billion in lost compensation and reduced access to credit.”
The SBPA was formed to provide a voice for small business owners who understand the value that electronic payment systems bring to their businesses. As part of that effort, the SBPA surveyed small business owners and decision makers about how they feel about proposed legislation that would affect this system. The survey found: Underlined Some key findings:
Small business owners are fighting the government’s new orders. Many small business decision makers do not support government regulation imposing new payment networks and have concerns about Durbin-Marshall Act and other regulations. Mandatory adoption of processing networks.
– When asked what level of government regulation there should be on payment processing fees, the majority of SMB decision makers (83%) say government regulation should either remain the same (48%) or be reduced (35%).
Two-thirds (64%) believe the Credit Card Competition Act would benefit large retailers more than small businesses, and 60% of small business decision makers say Congress is pushing through changes to digital commerce without considering the impact on their company.
Similarly, nearly two-thirds (64%) say the mandatory implementation of new/updated processing networks would impose an undue cost burden on business owners, and more than half (57%) expect profits to decrease if new network processing changes are required.
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– When thinking about digital transactions, 88% of SME decision makers say digital transactions are somewhat or very important to their business.
– 88% of respondents say their customers use credit cards or digital payments for at least some (23%) or most (65%) purchases.
Nearly three-quarters (71%) say adopting credit cards or digital payments has helped their organization improve profitability.
– Two-thirds (67%) say adopting digital payments has made bookkeeping easier.
Small businesses believe that the benefits of existing electronic payment systems are worth paying for. SMB decision makers trust, rely on and value the secure transactions, fraud prevention and data privacy of today’s payment systems.
– Nearly all small business decision makers (99%) believe customers value payment security, and two-thirds (66%) say current payment processing fees are necessary for digital privacy.
– 81% trust their current payment systems to protect customer data.
Small businesses are far more concerned about inflation than they are about fees. The settlement fee is Not a major business cost For small business decision makers, it will have a smaller impact on business bottom lines than inflation.
– Payment processing fees are not the top cost for small business decision makers: labor costs (46%), cost of goods (34%), inflation costs (29%) and taxes (29%) are the top expenses, with only 14% citing payment processing fees as their top expense.
– More than half (61%) of small business decision makers say payment processing fees don’t have a significant impact on their company’s bottom line, and two-thirds (64%) believe inflation has a more negative impact on their bottom line than payment processing fees.
Small business owners overwhelmingly oppose any new government mandates, relying on the security and ease of use of existing electronic payment systems and far more concerned about issues like inflation than interchange fees.
