For decades, I’ve watched small businesses across southwest Arkansas do what they’ve always done best: work hard, treat people right, and keep our communities strong. From family-owned shops in Hope, Nashville, and my hometown of Washington to the small retailers and service providers that anchor towns across our region, these businesses operate on thin margins and deep commitment, but one cost continues to erode that foundation: credit card swipe fees.
President Trump recently endorsed the Credit Card Competition Act (CCCA), a measure that would bring meaningful competition to the credit card processing market and provide long-overdue relief to businesses and families. Arkansas’s senators should follow that lead.
Most customers never see swipe fees. They’re built into the price of groceries, school clothes, fuel, and prescriptions. But business owners see them every day. These fees are charged as a percentage of each credit card transaction and have quietly become one of the highest operating expenses for many small businesses. As more customers use cards instead of cash, the burden continues to grow.
In Arkansas, businesses now pay more than $710 million in swipe fees annually. That’s revenue leaving our local economy, money that could otherwise go toward hiring employees, expanding operations, investing in equipment, or keeping prices stable for families already stretched thin. Instead, it flows to the country's largest financial institutions.
Since 2010, swipe fees have quadrupled. When those costs rise, small businesses have few options. They can absorb the hit and risk falling behind, cut staff, or raise prices. In many cases, they are forced to raise prices. That means Arkansas families end up paying an estimated $1,800 per household per year due to a fee most have never heard of.
The core issue is market concentration. Visa and Mastercard control more than 80 percent of the credit card network market. With that kind of dominance, they effectively set the rules. Banks comply because higher fees mean higher profits. Meanwhile, small businesses cannot negotiate rates or choose alternative networks. It is not a competitive market. It is a system tilted toward the largest players.
The Credit Card Competition Act would not eliminate credit cards or reward programs. I, for one, appreciate the points, but it would simply require large banks to enable at least two unaffiliated networks on credit cards, giving merchants a choice in how transactions are processed. That single reform introduces competition. When companies must compete, prices tend to come down, and service improves. More opportunities allow for businesses and consumers to negotiate toward better rates.
Competition has always driven growth in Arkansas. Our small businesses compete every day on service, quality, and trust. They do not ask for special treatment; they only ask for a fair opportunity. But in the credit card industry, competition has been squeezed out, and local businesses are paying the price.
At a time when families are navigating higher costs across the board, Congress should pursue practical, bipartisan solutions that provide real relief. The CCCA does exactly that.
Senators John Boozman and Tom Cotton have consistently advocated for Arkansas businesses and rural communities. Supporting the Credit Card Competition Act is an opportunity to back Main Street businesses across southwest Arkansas and ensure they are not forced to shoulder unfair costs year after year.
Arkansas businesses deserve a level playing field. Passing the Credit Card Competition Act would be a strong step toward restoring it.
Dolly Henley is the State Representative for District 88 and the former Director of Parks and Recreation for the City of Nashville, AR.