Small business owners in Georgia face rising credit card processing fees that cut into their profits, and many now support federal reforms like the Credit Card Competition Act to bring competition and lower costs. This push comes as fees hit record highs in 2025, prompting calls from entrepreneurs and lawmakers to address the dominance of major card networks.
The Burden of Swipe Fees on Georgia’s Economy
Georgia’s small businesses, which make up over 99 percent of the state’s enterprises, lose billions each year to credit card swipe fees. These fees, charged by networks like Visa and Mastercard, average between 2 and 4 percent per transaction and have surged in recent years.
In 2023, US businesses paid about 148 billion dollars in swipe fees, up from 121 billion the year before. For Georgia owners, this means less money for hiring, expanding, or even keeping the lights on. A Savannah bookstore owner shared how these costs force tough choices, like raising prices or cutting inventory.
Lawmakers and business groups argue that without reform, these fees will keep climbing. They point to how the duopoly controls 80 percent of the credit card market, setting rates with little competition.
Experts say this setup disadvantages independent operators who lack bargaining power. As inflation pressures mount, many Georgia entrepreneurs see fee reform as essential for survival.
What the Credit Card Competition Act Proposes
The Credit Card Competition Act aims to inject competition into the payments system by requiring large banks to offer merchants a choice of at least two networks for credit card transactions. Introduced in Congress with bipartisan support, the bill targets banks with over 100 billion dollars in assets.
Supporters claim it would lower swipe fees through market forces, without direct caps. For instance, smaller networks could compete on price and service, potentially saving businesses billions.
Recent data shows similar reforms on debit cards reduced fees in the past. The act builds on that model but focuses on credit cards, where fees remain unregulated.
If passed, it could save American businesses and consumers nearly 16 billion dollars annually. In Georgia, this might translate to about 1,200 dollars per household in lower prices.
Voices from Georgia’s Main Street
Entrepreneurs across the Peach State share stories of how high fees squeeze their operations. A bookstore owner in Savannah described fees as a “modern-day cartel” that drains revenue daily.
Local chambers and business alliances echo these concerns. They highlight how fees force owners to pass costs to customers or absorb losses, hurting community growth.
- Higher operational costs: Fees add up quickly for high-volume sellers like retailers and restaurants.
- Limited options: Small businesses often can’t negotiate better rates with dominant networks.
- Impact on hiring: Reduced profits mean fewer jobs in local economies.
These voices have gained traction in 2025, with opinion pieces and social media campaigns urging action.
Advocates tie this to broader economic trends, like rising living costs. They argue reform aligns with free market principles that built Georgia’s vibrant small business scene.
Potential Savings and Broader Impacts
Passing the act could lead to significant savings. Estimates suggest US households might see annual relief of around 1,200 dollars as businesses lower prices.
In Georgia, where small firms employ half the workforce, this could boost local economies. More disposable income for owners means investments in communities, from new stores to charitable giving.
| Aspect | Current Situation | With Reform |
|---|---|---|
| Average Swipe Fee | 2-4% per transaction | Potentially reduced by competition |
| Annual US Cost | 148 billion dollars (2023) | Savings of up to 16 billion dollars |
| Georgia Businesses Affected | Over 99% of enterprises | Lower costs for 99.7% of firms |
| Household Savings | N/A | About 1,200 dollars per year |
This table illustrates the stark contrast. Experts predict that competition would encourage innovation in payment tech too.
However, opponents worry it might affect credit card rewards programs. They claim banks could cut perks to offset lost revenue, though supporters counter that overall savings outweigh this.
The debate heated up in 2025 with endorsements from figures like Vice President JD Vance, who backed similar measures.
Challenges and Opposition to Reform
Not everyone supports the act. Credit card companies argue it could weaken network security and reduce consumer benefits like rewards points.
Banks say the changes might shift costs elsewhere, potentially raising fees for other services. This has led to lobbying efforts against the bill in Congress.
Despite this, momentum builds as small business groups rally. In Georgia, state leaders explore complementary measures, like surcharge laws allowing merchants to pass fees to customers.
Recent polls show public support for reform, especially amid high inflation. Business owners hope this pressure leads to action before fees escalate further.
Path Forward for Georgia Entrepreneurs
As Congress debates the act, Georgia’s small business community watches closely. Passing it could mark a win for Main Street over Wall Street, fostering a fairer playing field.
State officials might also push local reforms to complement federal efforts. This includes updating surcharge rules, which vary by state and allow some fee recovery.
In the end, reform promises to empower entrepreneurs and consumers alike. Share your thoughts on how credit card fees affect your business or shopping habits in the comments below, and spread the word to keep the conversation going.
