Credit Card Competition Law Would Hurt Missouri Small Businesses – Missouri Independent

As any small business owner knows, customer experience is just as important as the quality of the products or services we offer. For my wellness and beauty business, AN Skin & Beauty in O'Fallon, my customers expect and depend on being able to purchase our products in my store and online with ease and peace of mind.

The innovation that enables instant and secure processing of customer payments on the networks that connect my payment platform to the customer's bank and my professional bank is often taken for granted to make the purchasing experience simple and worry-free for all parties.

With this efficient system, our customers can make purchases knowing that their financial information will be protected and processed securely.

The current system promotes trust. Customers trust that their information is safe and I trust that payments are made securely, protected from fraud with current system protections. This allows me to focus on what really matters, which is running my business and providing top-notch customer service to my clients.

Because my business relies heavily on the security benefits offered by today's digital payment system, I am deeply concerned that the U.S. Senate is considering a bill that threatens the security of digital credit card payments and that , unfortunately, Senator Josh Hawley recently signed on. as a sponsor.

The bill, incorrectly titled the Credit Card Competition Act (CCCA), would open credit card processing to untested and less secure payment networks, significantly increasing the risk of fraud and data breaches .

If we were forced to use these alternative, less secure payment networks, the consequences for small businesses like mine would be disastrous. We would lose the support and trust of our customers, which would seriously harm our reputation and ultimately our bottom line. It's a risk that small businesses like mine really can't afford to take. And the small business owners I know don't have time to choose between different payment networks, especially when the current system works well.

The impact of ACCCA extends far beyond just security concerns.

Not only would the legislation make credit card processing less secure, it would also reduce the funding that banks and credit unions use to invest in fraud prevention and other credit card security features, that protect us and our customers. Large retailers may be able to afford the consequences of data breaches and fraud, but truly small businesses like mine don't have that same luxury.

Although supporters of this bill claim it will help small businesses save money, I fear that only large retailers will see real benefits if it passes. Small businesses don't have the same leverage as these larger merchants to negotiate lower rates for themselves, which means small business owners like me would find themselves facing higher costs while larger companies pocket the potential savings that could result from the bill.

The consequences of this bill do not stop there.

According to a recent report from the University of Miami, if the CCCA becomes law, small businesses would lose approximately $1 billion in rewards points under this new system. The points I earn from purchases I make with my business credit card go a long way toward financing my business purchases and travel and supporting my employees, which helps keep my business expenses low. Removing these rewards points would be a major blow to the financial stability of my business.

I believe the success of small businesses like mine depends on the security and rewards offered by the existing credit card payment system. Putting this at risk not only jeopardizes the trust our customers place in us, but also jeopardizes our ability to compete and succeed.

I want to remind Senator Hawley and Missouri's representatives in Washington that small businesses are the backbone of the American economy. We are the engine of innovation, job creation and economic growth.

Congress should prioritize legislation that empowers and supports small business owners. We need an environment in which we can thrive, not one that endangers our security and livelihoods by undermining the tools we need to run our businesses.

By protecting the secure credit card network that maintains the current rewards points system, Congress can continue to empower small businesses like mine, allowing us to continue to be the engine of the American economy. Now is not the time to make untested experiments on our financial security. We need a system that promotes trust, not fear.