Walton Gresham is right (“Retailer Sees Cap Delay As Another Bailout of Banks”) that the swipe fee reforms enacted in last year’s Wall Street Reform and Consumer Protection Act are critical to a small business like mine.
I own a Bops Frozen Custard, which is a high-volume, low-ticket business. Merchant service fees on every card swiped are particularly expensive for us. Our average ticket is $7. We pay 16 to 18 cents per card swipe and an additional 2 percent of the total transaction on top of that. A credit card transaction ends up costing us 4 to 5 percent of the sale depending on the type of card swiped.
I have no problem with a credit card company covering their processing costs and having some profit margin. They can still do that after these reforms are enacted. But the reforms mean small businesses like mine are able to invest more in our companies to grow in Mississippi, instead of sending millions of dollars out of state.
A number of senators are being urged by huge banks and credit card companies to repeal this amendment. But I’m thankful Sen. Roger Wicker supported these reforms last year and I hope he continues to support this pro-small business policy.
These reforms quite frankly will help keep the small business owner and the American Dream alive.
Owner, Bops Frozen Custard