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The 2026 legislative session may have adjourned in Indiana, but for small-business owners across the state, the cost pressures haven’t taken a break. From rising operating expenses to thinning margins, Hoosier entrepreneurs are still feeling the squeeze.
Both Democrat and Republican lawmakers made lowering costs a priority this year — but that focus shouldn’t fade just because the gavel came down. Planning for the next session should start in earnest. One practical place to begin? Reining in how major credit card networks charge fees on everyday transactions.
Credit card interchange fees — better known as “swipe fees” — are sneaky charges that are largely invisible to consumers. When a customer enters my store and uses a credit card to pay for their next read, I’m on the hook to give a chunk of that transaction — generally 2% to 4% — to the credit card company and issuing bank.
Most businesses operate with narrow margins, meaning some merchants are forced to raise sticker prices or tack on surcharges for customers who pay with plastic. A few cents on a single book might seem minor, but across thousands of transactions, it adds up. Businesses fork over billions each year to cover these fees, an expense that also rolls downhill to consumers. Here at Fables Books, we have so far chosen not to add a surcharge for credit card charges, but if these fees continue to rise, we might be forced to do just that.
Estimates show the average family pays an extra $1,200 a year because of the “swipe fee” scheme.
Without legislative action, relief for Main Street and consumers will remain elusive. Why? Because Visa and Mastercard control nearly four-fifths of the credit card market.
Imagine if two major book distributors worked together to jack up the cost of every title on the shelves. Independent booksellers would have no choice but to pay up.
Earlier this year, lawmakers in Indianapolis took steps to address this imbalance. A proposal from Rep. Alaina Shonkwiler, R-Noblesville, would have prevented credit card networks from charging “swipe fees” on non-revenue-generating portions of transactions like taxes and tips. In plain terms, businesses would pay fees only on the actual price of the goods or service being sold — not on money they never keep.
Although the measure failed to advance before the Legislature adjourned, lawmakers should prioritize similar reforms when they return. Doing so would send a clear message that Indiana is a state where fair competition and entrepreneurship go hand-in-hand.
Federally, the state’s elected leaders in Washington can go even further. The bipartisan Credit Card Competition Act — endorsed by figures ranging from President Donald Trump to Sen. Dick Durbin, a Democrat from Illinois — would lower “swipe fees” in all 50 states by requiring banks to include a second processing network beyond Visa and Mastercard on the credit cards they issue. This would open the door for other payment processors to compete for a merchant’s business, compelling “swipe fees” to come down across the board.
If passed, it’s estimated that the Credit Card Competition Act would save businesses upward of $16 billion annually. It’s a win-win solution that levels the playing field for small businesses and gives other payment networks — such as NYCE, Star or Shazam — an opportunity to go toe-to-toe with Visa and Mastercard.
As lawmakers in Indianapolis look toward their next session in 2027, Hoosiers are watching for solutions that would lower costs and strengthen the state’s economy. Reining in the unchecked power of major credit card networks would be a practical place to begin.•
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Kristin Saner is the co-owner of Fables Books in Goshen.
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