The CCCA would harm marginalized communities

Tommie Beevas

The Black community has faced many hurdles, yet we have shown remarkable resilience and unity in rebuilding and strengthening our neighborhoods. When I came to America from Jamaica as a young student, a network of family and community helped me find my footing and pursue opportunities that made my American Dream a reality. It’s in this spirit that I founded Pimento Relief Services, a coalition dedicated to uplifting our community. Our organization works to support the needs of our community through economic, social, and political liberation for all Black people.
Legislative action and equitable policy are crucial to the success of Black-owned enterprises. My role as a community advocate demands that I challenge any legislation that might jeopardize the strides we’ve made.
The Credit Card Competition Act (CCCA), currently under consideration in Congress, could undermine gains made by Black-owned small enterprises and risk credit access for our communities while giving the nation’s largest retailers a billion-dollar windfall.
Over a decade ago, Congress regulated debit card transactions. The result? Corporate retailers enjoyed a $100 billion windfall, while small financial institutions suffered losses despite supposed protections. According to a study by the Mercatus Center at George Mason University, nearly three-quarters of surveyed banks reported a significant reduction in revenue due to the regulations, with some reducing services or closing branches. Customers ended up with significantly less access to free checking accounts as well as higher fees, which particularly impacted already underserved communities.
A combination of hard work and luck helped my business partner and I win Food Court Wars, which jump-started our small business. But you shouldn’t have to win a TV competition to get your idea off the ground. Community banks and credit unions are lifelines for underbanked minority communities and aspiring entrepreneurs who need capital to start their ventures. The CCCA would cut into the revenue that enables these institutions to offer crucial financial services to our communities. Both businesses needing credit access and their customers could lose access to affordable credit and credit card rewards programs if the CCCA becomes law. This could be devastating for Black and immigrant communities.
When Congress capped debit card interchange fees, the regulations had striking negative impacts on small businesses. The destabilization resulted in major cuts to lending and services by small banks to new entrepreneurs, hampering the development of startups in our communities. We cannot afford to repeat this mistake and deny entrepreneurs of color the opportunity to build their own financial future while helping their neighborhoods thrive.
The progress made within the Black community is hard-won, and the Credit Card Competition Act could obstruct our efforts to break financial barriers. We must retain the right to shape our community’s future without compromising our opportunities for empowerment.
I urge our representatives to reject the CCCA and instead support policies that truly empower small businesses and marginalized communities. Our economic future depends on it.