Business & Tech
Manassas Franchisee Fights For Fair Credit Card Fees
Regional and national business owners, including a Manassas-based 7-Eleven franchisee, visit Capitol Hill to try and keep credit card fee reforms in place.
Small business owners, regional and national, have had it with banks over credit card usage fees and are making their voice heard.
Including Manassas-based 7-Eleven franchisee Kashif Ghazanfar, franchisees from Maryland and Virginia visited Capitol Hill this week to discuss their concerns over interchange fees, also known as swipe fees. Merchants pay these fees to card issuers every time a customer makes a purchase with a card.
Last year, President Obama signed the Wall Street Reform and Consumer Protection Act. The law included an amendment supported by Sen. Dick Durbin (D, Ill.) that directed the Federal Reserve to make fees “reasonable and proportional” under the new rules. The Senate and the House are considering bills to delay the new rules, allowing regulators time to study the issue.
Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.
According to the Associated Press, the Federal Reserve said Wednesday they would not be able to meet an April 21 deadline on making the new rules. The Fed cited letters and complaints that need to be studied. The new rules automatically take effect in July unless more delays are issued.
Ghazanfar and nearly 20 other franchisees visited the offices of Senators Jim Webb and Mark Warner and Rep. Frank Wolf (R, 10th dist.) to re-emphasize their position.
Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.
“We're asking for fair fees,” Ghazanfar said. Ghazanfar's franchise is located off of Nokesville Road near Manassas Airport.
“Visa and MasterCard are holding us ransom, charging what they want and don't give a reason for it. The charges are unfair and uncalled for.”
Ghazanfar has 14 employees working at the 7-Eleven. After employee salaries, interchange fees were his second-highest expense of the year. Ghazanfar paid nearly $16,000 in fees last year, money he says could be used in other areas.
“I want to hire part-time workers and students in the summer,” Ghazanfar said. “We could provide more jobs.”
Ghazanfar also said that he would also like to financially support his son's T-ball team.
In 2009, 7-Eleven submitted nearly 1.6 million petitions signed by franchisees, employees and customers. Meetings took place with members of Congress and staff. FZs for Fairness, a project of 7-Eleven, consists of nearly 5,000 franchises nationwide and is fighting to keep the Durbin reforms in place.
