Small Businesses Praise Mastercard, Visa $30 Billion Settlement: How Lower Credit Card Fees Can Help Stretched Budgets in Today’s Economy

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

The recent settlement between Mastercard and Visa, worth $30 billion, has been met with positive reactions from small businesses. This development stems from an anti-trust lawsuit filed against the two companies in 2005. For small business owners like Ashley Ryan, owner of Stash Apparel and Gifts on Brookside, this news is a relief given the challenges of operating a small business in today’s economy.

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. This financial burden places a strain on small businesses, especially those that are already struggling financially.

Ryan emphasizes the importance of lowering credit card fees for small businesses. She notes that 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. She believes that this settlement will pave the way for a more level playing field in the marketplace and provide much-needed support for small businesses like hers.

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