Small businesses get caught in debit card kerfuffle

3/16/2011

The economic climate over the past few years has been less than welcoming for small businesses, with many entrepreneurs struggling to make ends meet. Fortunately, the Federal Reserve is looking to implement a new rule that will cut the debit card transaction fees significantly, saving small businesses a tremendous amount of money in the process.

However, not everyone involved is happy with the Federal Reserve's intervention. Banks and political allies of financial institutions are looking to strike down the motion where it stands because they believe the government is bullying banks by implementing the measure.

"I hear countless examples in which swipe fees are the second highest cost of doing business after personnel. Not rent. Not supplies. Banking fees," Jarron Springer, executive director of the Tennessee Grocers & Convenience Store Association, wrote for the Tennessean. "It's a crystal clear signal that the market is completely broken. It's a free market conservative's nightmare."

If business owners are struggling to keep up with expenses, such as debit fees, they may want to consider taking out commercial loans to offset these costs.