OPINION: Reward Programs Are Crucial To Small Businesses

Small business owners often survive on tight deadlines and thin margins. It’s a constant balancing act between rising costs and customer expectations. Like many entrepreneurs, I rely on every tool available to stay competitive. One of those tools is credit card rewards. 

That’s why the Credit Card Competition Act concerns me. In theory, the bill aims to increase competition among payment networks and reduce transaction fees for businesses like mine. In practice, however, it risks dismantling a system that small businesses have come to depend on in ways lawmakers may not fully understand. 

For my business, credit card rewards are part of how we operate. I own and operate a screen-printing company in Louisiana, with everyday business expenses that I often pay for with credit. The points we earn on everyday business expenses like ink and equipment add up over time. Those rewards have allowed me to offset the cost of essential materials during slower seasons and invest in opportunities I otherwise couldn’t afford. 

Those same rewards helped cover travel and lodging costs for a major screen-printing conference in Fort Worth. For small business owners like me, conferences like this are investments. They allow me to build relationships and networks with suppliers and other business owners, where I can learn new production techniques and ideas that I’m able to bring back to Louisiana to make my business more efficient and competitive. Without those rewards, I likely would have stayed home, missing out on opportunities that ultimately benefit my customers and employees. 

The Credit Card Competition Act threatens to do just that. By forcing transactions onto alternative networks that may not support rewards programs at the same level, if at all, the bill could effectively eliminate the incentives that make these programs viable. Large retailers may see marginal savings, but small businesses like mine stand to lose tangible tools that allow us to stay competitive. 

In other countries like the United Kingdom, Australia, and New Zealand, the elimination or capping of credit card fees led to higher consumer fees, lower reward values, and market stagnation for small business owners like myself. Small businesses do not see any real relief from these policies, and profits made by lower credit card fees are rarely passed to the consumer. Instead, money saved by small business owners is used to offset business costs. 

Meanwhile, the operational complexity increases. Routing transactions across multiple networks could introduce new points of failure, reduce fraud protection, and create uncertainty in day-to-day transactions. For a small shop already juggling production schedules, staffing, and customer demands, one thing is for sure: That’s the last thing we need. 

If lawmakers truly want to help small businesses, they should engage directly with owners who make up this community. They should consider how policies affect not just costs, but also the tools and systems we rely on for sustainability and growth. 

The Credit Card Competition Act, as it stands, risks taking away more than it gives. As a small business owner, I urge our Louisiana Senators, Bill Cassidy and John Kennedy, to oppose this bill. Don’t take away one of the few advantages small businesses have in an increasingly competitive landscape. 

By Keith Willard

Owner of Cross Tees Screenprinting