Bill Aims to Increase Credit Card Competition, Save Small Businesses Billions
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The credit card industry lacks competition, allowing Visa and Mastercard to charge high "swipe fees" that hurt small businesses.
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The proposed Credit Card Competition Act would increase competition in the credit card industry, estimated to save small businesses $15 billion per year.
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The bill requires big banks to offer small businesses more options to process credit card transactions with lower fees.
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The legislation exempts community banks from extra compliance costs, allowing them to better compete with large banks.
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Increased credit card competition, following historical examples like the airline industry deregulation, will lower prices and promote innovation to benefit small businesses.