Hawkeye Reporter

Edy Massih, owner of Edy's Grocer in Brooklyn, provided testimony to the Senate Judiciary Committee emphasizing the importance of credit access for his business. He said that during the pandemic, flexible payment terms and rewards programs were crucial in sustaining operations.

"Access to credit was critical in our early days," said Massih. "Like many minority-owned businesses, we faced challenges securing traditional loans. Credit cards became our lifeline, helping us purchase equipment, manage cash flow, and reinvest profits. Flexible payment terms and rewards programs were essential, particularly during the pandemic, when we pivoted to online sales and relied on electronic payments to sustain operations."

According to Congress.gov, the Credit Card Competition Act of 2023 (H.R.3881) seeks to increase competition in the credit card market by mandating that large credit card issuers permit transactions to be processed over at least two unaffiliated networks. The bill aims to prevent issuers with assets exceeding $100 billion from limiting the number of networks available for processing electronic credit card transactions.

A study by the Electronic Payments Coalition suggests that the Credit Card Competition Act could potentially cost the U.S. economy around $227 billion and lead to a loss of 156,000 jobs. The study indicates that small businesses, which often depend on credit card rewards for operational expenses, might encounter higher costs and reduced access to credit due to this legislation.

NerdWallet reports that if enacted, Iowa's small businesses could face increased operational complexity and costs as they manage multiple processing networks. This may not necessarily result in lower fees for smaller merchants who lack bargaining power. The potential reduction or elimination of credit card rewards programs could adversely affect businesses relying on these incentives for expense management and customer attraction. Concerns persist that any savings from reduced swipe fees might primarily benefit large retailers, placing local Iowa businesses at a disadvantage.

Massih opened Edy's Grocer in August 2020, offering Lebanese-inspired cuisine in Brooklyn, NY. The store quickly gained popularity within the community for its deli offerings and events such as cookbook clubs and dinner parties.