1) Stop raising credit card interest rates:
Banks and the associated credit card companies are raising interest rates for many of its consumers. These rates are doubling and sometimes even tripling depending on the individual. Raising rates benefits the card companies but not our economy because it decreases the amount of cash consumers have for spending. Less spending means less income for business owners – eventually leading to fewer jobs.
2) Help out business owners through loans:
Many banks are decreasing the amount of loans to business owners and when they do loan out money their interest rates are fairly high. This is hurting business owner, especially retailers, that rely on loans to assist in payroll and purchasing inventory. Retailers and other companies purchase goods and then wait to sell their products. This generates a lag time before profits are realized. During this lag time business owners still have to pay employees and other bills; usually running into the red; and need bank support to help keep running. Without bank support many are letting people go and some are even declaring bankruptcy.
According to the American Bankruptcy Institute (www.abiworld.com), 2008 saw 43,546 filings for business bankruptcy, the most filings since 1998 which saw 44,196. In addition, the first three quarters of 2009 saw 45,510 filings which indicate our economy has not turned around for the better.
3) Get a handle on credit card transaction fees:
Many businesses provide choices for their customers in the use of credit cards. Unfortunately, the fees for card transactions range from 2 to 4% of the transaction price so the more a shopper buys the greater the fees are. Business owners transfer this cost to their customers in terms of higher prices which is why some stores have turned to charging additional fees when using a credit card. Overall the shoppers purchase less for more, and the card companies benefit the most not the business owners. Lowering the fees will generate more income for business owners, which will keep more jobs open. The more jobs that remain open the quicker our economy can recover.