Show-Me State Times

Molly Ashton, franchise owner of Crumbl Cookies, testified before the Senate Judiciary Committee, emphasizing the importance of credit card rewards for managing expenses, supporting employees, and sustaining growth. She urged Congress to protect the current system.

"Credit card rewards directly support my business, helping me cover expenses, support my employees, and sustain growth," said Ashton. "The existing payment framework is safe, efficient, and vital to small businesses, and Congress must prioritize protecting it."

The Credit Card Competition Act of 2023 (S.1838/H.R.3881) aims to enhance competition in the credit card processing market by requiring major credit card issuers to enable transactions on at least two unaffiliated networks. This measure seeks to reduce transaction fees for merchants by preventing exclusive arrangements with dominant networks like Visa and Mastercard. The bill is currently under consideration in Congress.

A study conducted by the Electronic Payments Coalition suggests that the Credit Card Competition Act could cost the U.S. economy approximately $227 billion and result in the loss of 156,000 jobs. According to this study, small businesses that often rely on credit card rewards to cover operational expenses would face higher costs and reduced access to credit, highlighting potential negative economic impacts.

According to the Missouri Independent, the proposed legislation would negatively impact small businesses in Missouri by increasing costs and reducing benefits from credit card reward programs. Business owners express concern that losing these rewards could hinder their ability to manage expenses and maintain financial stability. The legislation might also limit their ability to negotiate better rates, putting them at a disadvantage compared to larger retailers.

Ashton is a franchisee of Crumbl Cookies, a rapidly expanding gourmet cookie company known for its rotating menu of unique cookie flavors. She has played a key role in managing operations and ensuring her franchise location's success.