LOCAL COLUMN
OPINION: New Mexico's small business community is getting swiped by credit card fees
New Mexico鈥檚 primary elections are in the rearview mirror. With the field now set heading into November, small businesses are watching closely to see which candidates will go to bat for Main Street.
One issue that鈥檚 top of mind? Sky-high credit card processing fees that are squeezing the life out of local businesses across the state.
Every time a customer enters our bookstore and makes a purchase with a credit card, we鈥檙e on the hook to pay a portion of that sale 鈥� generally between 2 and 4% 鈥� to the credit card network and issuing bank. It doesn鈥檛 matter if they鈥檙e buying the latest bestseller or a simple bookmark.
Called a 鈥渟飞颈辫别 fee,鈥� these charges were initially introduced to offset the cost of processing a credit card payment. But over time, they've into the second largest operating expense for Main Street businesses. And they show no sign of slowing down.
Nationally, businesses lost an estimated to credit card swipe fees in 2025 alone 鈥� a $9 billion increase from the year before. For small businesses operating on razor-thin margins, that kind of financial drain is impossible to ignore.
Swipe fees are also squeezing consumers. When businesses can't absorb rising costs, they're often forced to raise sticker prices or tack on surcharges at checkout. Studies show the average American family pays roughly each year thanks to price hikes tied directly to swipe fees. That's real money coming out of the pockets of New Mexico families.
The heart of the problem is a lack of competition in the payments arena. Visa and Mastercard control roughly of the credit card market, giving them near-total power to set swipe fee rates with little pushback. With a of Americans carrying a credit card, going cash-only simply isn't a realistic option.
But there are ways New Mexico can break this cycle.
For starters, policymakers in Santa Fe could prohibit credit card networks from charging swipe fees on non-revenue portions of a transaction. Right now, fees are applied to the full checkout total 鈥� including sales tax that businesses collect on behalf of the government and never keep a cent of. In other words, entrepreneurs are paying a de facto tax on a tax.
Reforming this practice wouldn鈥檛 solve every headache associated with credit card fees, but it would provide Main Street with some short-term relief.
New Mexico's congressional delegation can also step up. The bipartisan Credit Card Competition Act 鈥� by leaders like Senate Democratic Whip Dick Durbin, D-Illinois 鈥� would require the largest banks to include at least one processing network beyond Visa and Mastercard on the credit cards they issue.
That simple change would allow smaller networks to compete for a merchant's business by offering lower fees, compelling Visa and Mastercard to bring their rates down across the board. If passed, analysts estimate the Credit Card Competition Act would save businesses and consumers upwards of annually.
Main Street recognizes this, which is why of small business owners support a 鈥渟飞颈辫别 fee鈥� fix. Meanwhile, recent polling shows 3in 4 voters also want Congress to act on this issue.
New Mexico鈥檚 small businesses are the backbone of the state's economy. But they can't compete with one hand tied behind their back. Lawmakers should rein in excessive credit card 鈥渟飞颈辫别 fees鈥� to deliver meaningful relief to Main Street and the families it serves.
Rebecca Ewing is the owner of Books Etcetera in Ruidoso.
