FOR IMMEDIATE RELEASE: 3.30.2017
Supreme Court Rules Small Business Can Communicate with Customers on Cost of Credit Card Fees
Unanimous Decision - Communicating the Fees
Credit Card Companies Impose is Constitutional
– Yesterday, the U.S. Supreme Court ruled unanimously that Main Street businesses and merchants are constitutionally allowed to communicate to their customers the true costs of credit card fees and the impact it has on the cost of products and services in their stores. Credit card fees that are imposed on every transaction are a huge cost for small retailers—for many it is their highest cost of doing businesses after labor and wages!
The ruling, written by Chief Justice John Roberts, affirms the constitutional right for small businesses to disclose to their customers the impact these high fees have on prices.
“The Court’s ruling is a major victory for small businesses across America,” said Kevin Lawlor, a spokesperson for the Alliance for Main Street Fairness. “On a daily basis, Main Street businesses are straddled with the excessive costs credit card companies impose on them every time a customer swipes their card. This ruling ensures that there is transparency between merchants and their customers so that all consumers understand that the hidden costs large credit card companies impose ultimately lead to higher prices.”
KEY QUOTES FROM RULING:
“Each time one of their customers pays with a credit card, these merchants must pay some transaction fee to the company that issued the credit card. The fee is generally two to three percent of the purchase price. Those fees add up, and the merchants allege that they pay tens of thousands of dollars every year to credit card companies. Rather than increase prices across the board to absorb those costs, the merchants want to pass the fees along only to their customers who choose to use credit cards. They also want to make clear that they are not the bad guys—that the credit card companies, not the merchants, are responsible for the higher prices.”
The Alliance for Main Street Fairness (AMSF) is an organization committed to championing issues important to small businesses.
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