Banking

Op-ed: Credit card costs will injure customers, small companies

A suggested costs that would permit merchants to manage how banks procedure charge card deals would be a discomfort for customers, small companies and neighborhood banks attempting to fulfill the requirements of their consumers, Shan Hanes, CEO of Heartland Tri-State Bank in Elkhart, Kansas, and board chair of the Kansas Bankers Association, stated today in an op-ed for The Topeka-Capital Journal.  Senate Bill 4674, presented by Sens. Roger Marshall (R-Kan.) and Dick Durbin (D-Ill.), would benefit huge box shops and ecommerce platforms at the cost of everybody else, he stated.

“Kansas consumers will see their popular credit card rewards programs scaled back or end,” he stated. “Even if their issuer offers rewards, there’s no guarantee merchants will pick a network that credits them for their eligible benefits. More troubling, Kansans will not know if the merchant is relying on a payment network that skimps on security and compromises their data.”

Small organizations would likewise feel the discomfort, Hanes stated. “They will need to learn how to implement multiple payment options for each transaction as required by the government and train management and staff on the multiple new systems. They will need to explain to customers why they didn’t get the right reward points from their transactions or why their rewards programs went away altogether.”

Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

Related Articles

Back to top button