Charlotte, NC, December 6, 2025
Small business owners in North Carolina are uniting to advocate for lower credit card processing fees, which represent a significant financial burden. The Credit Card Competition Act is one proposed solution that could allow for greater competition among processing networks. Additionally, House Bill 13 seeks to cap surcharges and enhance fee transparency at the state level. Together, these measures aim to reduce costs for businesses and improve their financial sustainability.
Advocating for Lower Credit Card Processing Fees in Charlotte
Small businesses across North Carolina are uniting for change.
Charlotte, NC – Small business owners in North Carolina are calling for a reduction in credit card processing fees, which have become a significant obstacle to their financial sustainability. In 2024 alone, state merchants incurred losses exceeding $283 million due to these fees, which rank as the second-highest operating cost for businesses after labor.
The push for reform is gaining momentum. The Credit Card Competition Act currently being considered in Congress aims to stimulate competition by requiring major banks to offer at least two processing networks in addition to Visa and Mastercard on their credit cards. This change is projected to result in lower “swipe fees” across the board, potentially saving businesses and their customers a collective $16 billion each year. Such savings could be a lifeline for many small enterprises struggling to navigate rising operational costs.
State-Level Legislative Initiatives
In tandem with federal efforts, North Carolina legislators are tackling the issue at the local level. House Bill 13 proposes a cap on surcharges at 2% of the transaction amount, alongside requirements for explicit fee disclosure to consumers. Noncompliance with these regulations could result in civil penalties of up to $500 per violation. These state-level initiatives reflect an increasing acknowledgment of the burdens high credit card processing fees impose on small businesses — a critical component of North Carolina’s economy. By enacting such reforms, the state aims to ease financial pressures and create a more conducive environment for the growth and resilience of local enterprises.
Understanding Swipe Fees
To grasp the implications of these legislative efforts, it’s essential to understand what “swipe fees” are. These are the charges merchants incur when processing credit card transactions, typically ranging from 2% to 4% of the transaction amount. Lowering these fees could significantly ease the financial strain on businesses and, in turn, benefit consumers through potentially lower prices.
The Potential Impact of the Credit Card Competition Act
The Credit Card Competition Act, if enacted, is expected to usher in a new era of competitive pricing for credit card processing. By mandating that banks incorporate multiple processing networks, the act aims to disrupt the current dominance of Visa and Mastercard. With increased competition, businesses could expect reduced fees, fostering a landscape where small businesses are not only able to survive but thrive. This could ultimately lead to more jobs, more innovation, and greater economic activity in North Carolina.
Key Features of House Bill 13
House Bill 13 represents a proactive approach to protecting both consumers and merchants by capping surcharges and enforcing clearer communication regarding fees. By mandating consumer awareness, the bill may enhance transparency and build trust within the marketplace. These measures aim to empower businesses to engage more favorably with customers while navigating the complexities of card payment processing.
Conclusion
Addressing high credit card processing fees through legislative measures at both federal and state levels marks a critical step towards empowering North Carolina’s small businesses. Such reforms could alleviate financial burdens and foster a more vibrant economic environment. As the discussion continues regarding these important legislative initiatives, it is vital for community members to remain engaged and support local businesses. Together, we can advocate for a marketplace that promotes innovation, growth, and sustainable economic progress in Charlotte and beyond.
Frequently Asked Questions (FAQ)
What are “swipe fees”?
Swipe fees are charges that merchants pay to credit card networks and issuing banks for processing credit card transactions. These fees typically range from 2% to 4% of the transaction amount.
How does the Credit Card Competition Act aim to help small businesses?
The Credit Card Competition Act seeks to introduce competition by requiring major banks to include at least two processing networks other than Visa and Mastercard on their credit cards. This is expected to lower “swipe fees” across the board, potentially saving businesses and their customers an estimated $16 billion annually.
What does House Bill 13 propose?
House Bill 13 proposes capping surcharges at 2% of the transaction amount and mandates clear disclosure of these fees to consumers. Violations could result in civil penalties of up to $500 per offense.
Key Features of the Credit Card Processing Fee Reforms
| Feature | Description |
|---|---|
| Credit Card Competition Act | Requires major banks to include at least two processing networks other than Visa and Mastercard on their credit cards, aiming to lower “swipe fees” and save businesses and customers an estimated $16 billion annually. |
| House Bill 13 | Proposes capping surcharges at 2% of the transaction amount and mandates clear disclosure of these fees to consumers, with violations subject to civil penalties of up to $500 per offense. |
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