Published On February 28, 2024 – 8:36 AM
Written By Clint Olivier
In the ongoing dialogue surrounding financial policy reform, it’s imperative to analyze the detrimental impacts of bills like the Credit Card Competition Act. As the chief executive officer of the Central Valley Business Federation, I am aware of the profound effects this legislation could have, not only on our state but specifically in the Central Valley. Representing the interests of our local businesses, I firmly believe that Congress should prioritize enacting legislation that supports small businesses rather than imposing burdens upon them.
Credit cards serve as a vital financial tool for countless Americans, facilitating transactions totaling nearly $300 billion annually and enabling over $5 trillion in purchases in 2022 alone. They offer consumers security and convenience in their everyday transactions.
However, the current iteration of the Credit Card Competition Act threatens to undermine these benefits by reducing fees for retail giants like Walmart and Target while eroding credit card rewards and diminishing revenue from credit card interchange fees for small financial institutions and local businesses. Should this legislation pass, consumers would suffer the loss of valuable rewards programs, leading to potential increases in the prices of goods and services. This pattern exacerbates the divide between the affluent and the rest of society, disadvantaging our local businesses still reeling from the economic fallout of the pandemic.
U.S. Sen. Alex Padilla’s stance against this legislation is paramount, especially in light of research conducted by former Trump economic adviser Steve Moore and the Committee to Unleash Prosperity, which highlights the adverse effects of the bill. Rather than serving the interests of consumers, the Credit Card Competition Act could restrict access to credit cards, particularly for individuals with lower incomes, while disproportionately benefiting mega-corporations.
Sen. Padilla holds the responsibility to advocate for the welfare of his constituents. By opposing the Credit Card Competition Act, he can ensure the continued vitality of the credit card market, benefiting everyday Americans and small businesses alike.
I urge constituents and community members to join me in reaching out to Senator Padilla, encouraging him to carefully consider the implications of this legislation and prioritize the well-being of Californians by opposing the Credit Card Competition Act.
Clint Olivier is the CEO of Central Valley Business Federation and a former Fresno City Councilman. BizFed Central Valley is a grassroots federation of businesses and associations from Madera to Kern counties. With nearly 80 members, the organization represent 30,000 businesses from a wide array of industry sectors and nearly 400,000 employees.
