Ken Katz, the owner of Buenos Dias Café, expressed concerns over the Credit Card Competition Act (CCCA), stating that it threatens small businesses by undermining the security and efficiency of the current credit card processing system. Katz made this statement during testimony submitted to the Senate Judiciary Committee.
“Small businesses cannot afford legislation that disrupts the systems we rely on and undermines our ability to operate effectively,” said Katz. “I call on Congress to reject the CCCA and protect the efficiency and security of the current credit card payment system that is so crucial to businesses like mine. As the Senate Judiciary examines the Durbin-Marshall bill, I want you to remember that the success of small businesses depends on a secure and reliable electronic payment system. Please stand with the small business community and keep the current credit card processing system intact.”
According to Bankrate, the CCCA, introduced as the Durbin-Marshall bill, aims to increase competition in the credit card payment network market by requiring at least two network options on credit cards. Critics, including small business advocates like Katz, argue that the bill could lead to reduced payment security and higher costs, negatively impacting both consumers and businesses.
The Merchants Payments Coalition reported that credit card swipe fees cost consumers over $550 million annually. These fees significantly affect small businesses that must either absorb these costs or pass them on to customers. The coalition argues that the CCCA could increase these fees by introducing less efficient networks, contrary to its goal of reducing costs.
According to BoostSuite, small businesses make up 99.6% of all businesses in Georgia and employ nearly 1.7 million people. These businesses rely heavily on efficient and secure payment processing to maintain day-to-day operations. Any disruptions caused by changes to the credit card payment system could significantly impact their ability to function and remain profitable.
Katz owns Buenos Dias Café in Atlanta, Georgia, a small business serving coffee and breakfast options to the local community. He has been actively involved in advocating for small business interests and has publicly expressed concerns about potential legislative changes affecting payment systems.
