FOR IMMEDIATE RELEASE: 4.26.2017
House Financial Services Committee Hearing Stifles Voices of Small Business Owners
Financial CHOICE Act formally introduced, supporters continue to mislead about swipe fee reform
– Today, The Alliance for Main Street Fairness (AMSF) reacted to the House Financial Service Committee’s decision to formally introduce the Financial CHOICE Act, H.R. 10. The legislation put forth by the committee will end debit-card swipe fee protections important to the growth and sustainability of small businesses. The discussion hearing, held Wednesday, April 26, featured seven witnesses who testified on behalf of the bill - not one being a small business owner who would be impacted by its passage.
“It’s appalling that committee members would choose to have this conversation and introduce this bill without even a slight representation of the people and businesses who would be affected by this legislation,” said Kevin Lawlor, a spokesperson for AMSF. “Keeping these reforms intact is vital to the survival and success of small businesses throughout America. We encourage committee members to look past the false rhetoric and focus on the facts of swipe fee reform.”
During the hearing titled “A Legislative Proposal to Create Hope and Opportunity for Investors, Consumers, and Entrepreneurs,” Financial Services Committee Chairman Rep. Jeb Hensarling (R-TX) said repeatedly that the Financial CHOICE Act will provide economic opportunity for all. This claim has been proven false multiple times by economic and policy experts and small business owners. In reality, if swipe fee reform is repealed, consumers and small businesses will experience higher costs due to massive fees on every debit-card purchase. Research proves that swipe fee reform:
• Saved consumers $5 billion in its first year of reform
• Supported 37,000 jobs in its first year of reform
• Increased healthy competition for debit transaction, lowing debit transaction costs for retailers and consumers.
• Saved retailers and consumers more than $40 billion over the past five years
“We remind Congress that the large banks and credit card companies that caused the 2008 financial crisis will once again profit nicely off the backs of hard working small business owners and their customers by repealing these reforms,” said Lawlor. “History proves that without common sense oversight and transparency on our major financial institutions Main Street suffers. Swipe fee reform must be kept for the future of our small businesses and their communities. ”
Click here to get the facts on swipe fee reform.
Click here to view how swipe fee reform helped consumers and small businesses.
The Alliance for Main Street Fairness (AMSF) is an organization committed to championing issues important to small businesses.
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