With food and labor costs rising, restaurants are seeking other ways to reduce expenditures. One legislative proposal that would support foodservice operators is the Credit Card Competition Act of 2022, a bipartisan bill that would allow restaurants and retailers to choose which payment networks process their credit card transactions.
The legislation has already been introduced in the Senate and the National Restaurant Association is pressing for the House to introduce a similar bill. To support this effort, FEDA members can send a pre-worded email to their elected officials at this link.
Credit and debit card processing fees totaled $137.8 billion in 2021, costing an average of $900 per American family. As such, these swipe fees are one of the highest costs borne by the restaurant industry. Opening up competition for credit card transaction processing could save American businesses and customers $11 billion annually, according to payments consulting firm CMSPI.
“The legislation will finally inject needed competition into the payment ecosystem that could save businesses and consumers billions of dollars a year,” said Sean Kennedy, executive vice president of public affairs for the National Restaurant Association.