June 16, 2024

Lower Credit Card Fees Boost Financial Relief for Small Businesses: A Positive Outcome for Local Communities

2 min read
Tulsa Business Believes Visa and Mastercard Settlement Could Provide Relief for Small Businesses

A recent $30 billion settlement has been reached between Mastercard and Visa, which will result in lower fees for small businesses when customers pay with a credit card. This development is a positive outcome for small business owners like Ashley Ryan, who owns Stash Apparel and Gifts on Brookside.

Small businesses are required to pay a percentage of each transaction back to credit card companies whenever customers use a card to make a purchase. According to Ryan, most customers prefer paying with a credit card due to the convenience and rewards associated with it. Currently, businesses like hers pay about 3 to 4 percent for each transaction, which can add up significantly over time.

Ryan emphasizes the financial strain that credit card fees place on businesses, noting that the savings resulting from lower fees will be welcomed. She mentions how the preference for card payments among customers has a significant impact on the local community, as higher fees translate to more expenses for businesses. With expenses already high for small businesses, any opportunity to save money is seen as beneficial.

The approved settlement will impose a cap on the fees businesses pay until 2030, at which point both parties will have the opportunity to renegotiate. This development is expected to provide relief to small businesses like Ryan’s, allowing them to operate more efficiently and competitively in the market. Despite the challenges that come with running a small business, Ryan remains optimistic about the positive changes that lower credit card fees can bring to her business and the community.

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.