Support Arizona’s Small Businesses Over Corporate Giants!

In Gilbert, the Crumbl Cookies shop attracts lines of enthusiastic customers, particularly from Generation Z, who are eager for their sweet treats. This influx has established the shop as a cultural phenomenon for the younger demographic.

However, it’s not just their love for cookies driving patronage; many customers prefer the convenience of tapping to pay with their credit cards. Molly Ashton, the owner of Crumbl locations in Queen Creek and Mesa, notes this trend benefits her business significantly. A smooth transaction process is essential for maintaining customer satisfaction and keeping lines moving efficiently.

Ashton is paying close attention to House Bill 2629, which proposes changes to how credit and debit card transactions operate in Arizona. Proponents argue that it will reduce costs for small businesses, but Ashton believes the bill primarily favors large retailers at the expense of local enterprises.

At present, both big-box stores and smaller businesses pay processing fees to banks and credit card networks, which allows for quick, secure transactions. However, HB2629 aims to separate the tax from the total during processing. This complication could lead to logistical challenges and increased costs for small businesses that must adapt their tech infrastructure to accommodate the changes.

Current systems streamline transactions as one cohesive amount, and breaking this into two separate transactions could detract from customer convenience. Alongside this, the necessary software upgrades would impose a financial burden on businesses already operating on tight margins.

Evidence from similar legislation in other states suggests minimal savings for small businesses. In Illinois, for instance, the anticipated annual savings is approximately $56. Conversely, larger retailers, equipped with teams to navigate such changes, stand to gain significantly.

Moreover, this proposed legislation could be a precursor to broader restrictions on credit card rewards programs. Many individuals, including small business owners, rely on these rewards for personal and operational benefits. Ashton highlights her use of rewards points to enhance employee welfare, a practice threatened by potential policy shifts.

Small businesses are crucial to Arizona’s economy, employing half of the state’s workforce. New regulations like HB2629 could add unnecessary costs and complexities, further disadvantaging local businesses against major corporations.

As Ashton questions the direction of such legislation, she emphasizes the need to protect small enterprises. The future of Arizona’s small business landscape hangs in the balance, as the community faces critical decisions that could shape its economic health.