Chris Merritt, a business owner at Merritt Roofing LLC, expressed concerns that the Credit Card Competition Act would benefit large corporations while negatively impacting small businesses like his. He made this statement during an interview.
"Any time Washington passes mandates on business, small businesses like mine lose," said Merritt, Leader & Owner. "The businesses pushing for this legislation are corporate mega stores, which tells me this will pay off for them, but not for me."
The Credit Card Competition Act (CCCA) was introduced in 2023 by Senators Richard Durbin and Roger Marshall. The legislation proposes that banks offer merchants at least two network options for processing credit card transactions, with one option not being Visa or Mastercard. The bill's objective is to enhance competition in the payments market and lower fees charged to merchants.
Critics of the CCCA argue that it could lead to the adoption of less secure payment networks, thereby increasing fraud risks. A 2022 report by the Electronic Payments Coalition indicated that networks other than Visa and Mastercard are more frequently linked to data breaches. Opponents also warn that consumers might face higher costs if fraud protections are compromised.
According to Payments Journal, major retailers such as Walmart, Target, and Amazon support the Credit Card Competition Act because it could significantly reduce their transaction fees by allowing them to route payments through lower-cost networks. These large chains handle substantial transaction volumes and thus stand to save billions. Smaller businesses, however, may not experience significant cost savings due to their lower transaction volumes and could encounter added complexity.
Merritt owns Merritt Roofing LLC in Rock Hill, South Carolina, bringing over 30 years of experience in the roofing industry. He began his career as a roof installer and carpenter in the 1980s before becoming a licensed insurance adjuster and HAAG-certified roof inspector. Merritt Roofing is recognized for its professionalism and holds an A+ rating with the Better Business Bureau.