Fri. Jun 14th, 2024
Tulsa Business Believes Visa and Mastercard Settlement Could Provide Relief for Small Businesses

Small businesses have long been burdened by high credit card fees that can add up significantly over time. This has been particularly challenging for small business owners like Ashley Ryan, who owns Stash Apparel and Gifts on Brookside. However, recent news suggests that this may be changing soon.

Mastercard and Visa have recently settled a $30 billion lawsuit, which will result in lower fees for small businesses when customers pay with a credit card. This settlement stems from an anti-trust lawsuit filed against the two companies in 2005. For small business owners like Ryan, this news is a positive development given the challenges of operating a small business in today’s economy.

Small businesses are required to pay a percentage of each transaction back to credit card companies whenever customers use a card to make a purchase. According to Ryan, most customers prefer paying with a credit card due to the convenience and rewards associated with it. Currently, businesses like hers pay about 3 to 4 percent for each transaction, which can add up significantly over time.

Ryan emphasizes the financial strain that credit card fees place on businesses, noting that the savings resulting from lower fees will be welcomed. She mentions how the preference for card payments among customers has a significant impact on the local community, as higher fees translate to more expenses for businesses. With expenses already high for small businesses, any opportunity to save money is seen as beneficial.

The approved settlement will impose a cap on the fees businesses pay until 2030, at which point both parties will have the opportunity to renegotiate. This development is expected to provide relief to small businesses like Ryan’s, allowing them to operate more efficiently and competitively in the market. Despite the challenges that come with running a small business, Ryan remains optimistic about the positive changes that lower credit card fees can bring to her business and the community.

In conclusion, this settlement is expected to bring much-needed relief for small businesses struggling financially due to high credit card fees. It’s an important step towards creating fairer pricing practices in an industry dominated by two powerful players – Mastercard and Visa.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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