We are writing to alert you to an important legislative initiative that could significantly reduce credit card processing costs for cigar shops, lounges, and manufacturers nationwide.
Today, the credit card processing market is dominated by a small number of powerful networks that exercise outsized control over merchant agreements. This lack of competition has resulted in persistently high swipe fees, placing a disproportionate burden on small and specialty businesses, including those in the premium cigar industry.
There is, however, a meaningful opportunity for reform. The Credit Card Competition Act, a bipartisan bill last considered by United States Congress in 2023 and has been reintroduced this year, would increase competition in the credit card marketplace. The bill would require major credit cards to enable at least two unaffiliated network options for routing transactions, similar to the rules that already apply to debit cards.
If enacted, this legislation would promote competition, strengthen payment security, and drive down swipe fees by giving merchants real choice in how transactions are processed. For cigar retailers, lounges, and manufacturers, this could mean meaningful relief from one of the highest and most unavoidable recurring business expenses.
We strongly encourage you to contact your members of Congress and urge them to support the Credit Card Competition Act. Reducing excessive processing fees will allow cigar businesses to reinvest in their operations, support employees, and continue delivering premium products and experiences to their customers.
Please click the link below to take action on this important issue. Thank you for your continued advocacy and support of the industry.