PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SBE Council Statement on Senator Durbin’s New Mandates on Payments Industry  

By at 29 July, 2022, 8:37 am

NEWS

For Immediate Release

Washington, D.C. – Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement on Senator Dick Durbin’s (D-IL) latest bill that seeks to impose credit card routing mandates on the payments industry:

“Credit routing mandates would be costly and harmful for small businesses. These mandates would drive billions of dollars from the credit market, and force financial institutions to reduce crucial lending to businesses in need. Additionally, these mandates would strip small businesses of valuable services, like fraud prevention, that they rely on to protect their business and customers.

“In a recent survey of startup entrepreneurs who launched their businesses during the pandemic, 87% reported that access to electronic payment options was vitally important to their decision to start a business. Access to electronic payments tied for first as the most important tool or technology in starting a new business.

“Pro-investment policies have encouraged electronic payments providers to invest in the type of technology that has enabled the surge in new businesses, and continuous adoption across the small business economy. Intrusive government regulation and mandates work against the private sector investment that is needed to encourage new innovations and technologies, which directly benefit small businesses and consumers. SBE Council will educate Congress about these harmful effects in order to preserve these critical payment options for entrepreneurs and small businesses.”

Related Resource:

The Value of Electronic Payments to Small Businesses, SBE Council

CONTACT:

Karen Kerrigankkerrigan@sbecouncil.org

Ray Keatingrkeating@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 28 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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