The proposed Credit Card Competition Act (CCCA) is not good for small business

By Chris Merritt
Merritt Roofing

In 2016, I started Merritt Roofing, a small business serving homeowners in York County, SC and the greater Charlotte, NC area. Over these past seven years it’s been a blessing to see how quickly we’ve been able to grow and serve these communities. We added an office in Greenville, SC last year and have plans to expand beyond these areas in the coming years.

As a small business owner, I am uniquely aware of the challenges local businesses face with balancing so many responsibilities. We have to take care of our employees, manage cash flow and of course, deliver for our customers. I have many tools to help me juggle it all, but one that provides tremendous value to my business is the ability to process electronic payments securely and conveniently, while extending access to credit cards and the rewards that come with them.

That is why I am concerned about proposed legislation in Congress called the Credit Card Competition Act (CCCA) – a bill which despite its name would disproportionately benefit larger retailers while jeopardizing the many benefits small businesses owners enjoy from their use and acceptance of credit cards.

The CCCA would create a new government mandate that dictates which processing networks banks can accept for credit card processing without regard to security or quality. Though this bill might give retail giants like Walmart and Target more choice in how they process credit card payments, small businesses like mine simply do not have the power or infrastructure to take advantage of this policy the way that mega retailers do. As a result, I don’t believe for a minute that small businesses will see savings.

Beyond this, I am particularly concerned with the unintended consequences the CCCA would have on many of the benefits like rewards programs, payment security and fraud protection, and access to small business credit and loans.

My construction company, Merritt Roofing, relies on credit rewards programs to earn cash back on supplies and other essential business goods, which I use to offset business costs. Cutbacks to these rewards programs would hurt my business and countless others across South Carolina.

I am also seriously concerned about security and the consequences of flooding our system with alternative payment networks that may not invest in the same security and fraud monitoring standards as others. The CCCA takes away my ability to ensure that my business’s payment data is being processed securely whenever we swipe our credit cards.

Lastly, I worry this legislation would mean small businesses would be limited to loans and credit needed to keep our stores afloat through economic challenges. I know that for my business and others in our community, our credit card was a lifeline and the way we funded start-up costs for our business when we couldn’t yet get a bank loan.

As a small business owner, I worry about many things – but something I don’t worry about is how simply and safely cash flows through credit cards enabling me and my customers to keep projects and business moving forward. I don’t want Congress meddling with this critical tool that small businesses need to stay afloat and weather economic hardships. For the good of small businesses in our community and our state, South Carolina’s delegation should oppose the Credit Card Competition Act.

Chris Merritt is the owner of Merritt Roofing, serving homeowners in York County & Greenville, SC & the greater Charlotte, NC area.