Reducing Excessive Merchant Payment Fees
Reducing Excessive Merchant Payment Fees
Introduction
Hawaiʻi’s local businesses face some of the highest effective payment costs in the country. High card fees, limited negotiating power, and delayed settlement disproportionately impact small, independently owned merchants—especially in a tourism-driven economy where most transactions are card-present and low-margin.
Our focus is not abstract reform. It is practical payment policy that keeps more dollars circulating locally, strengthens small businesses, and improves economic resilience across the islands.
Challenge
National payment-cost models and existing market structures fail Hawaiʻi merchants in several key ways:
Card processing fees are set by national networks with limited local competition
Small merchants lack bargaining power to negotiate rates
Visitor-driven transaction volume is excluded from most fee analyses
High fees directly reduce margins, wages, and reinvestment capacity
These structural issues mean Hawaiʻi businesses pay more, while retaining less.
“Every percentage point lost to payment fees is a dollar that doesn’t stay in our community.”
The Problem
Hawaiʻi merchants face some of the highest per-capita swipe-fee burdens in the U.S.
National models underestimate total costs by ignoring visitor spending
Small businesses absorb fees directly due to thin margins
Lack of transparency limits informed policy and market reform
Our Policy Approach
We advocate for practical, merchant-focused payment reforms that operate within existing regulatory frameworks:
01. Fee Transparency
Clear disclosure of effective payment costs so merchants and policymakers can see the real economic impact.
02. Competitive Market Access
Support policies that encourage competition, innovation, and alternative payment options—without sacrificing consumer protection.
03. Merchant-Led Data Analysis
Use anonymized, aggregated transaction data to quantify real costs and identify inefficiencies unique to Hawaiʻi.
04. Regulatory Alignment
Ensure payment modernization strengthens oversight, compliance, and consumer protection rather than bypassing them.
Expected Outcomes
Lower effective payment costs for small merchants
Faster settlement and improved cash flow
Greater reinvestment in wages, hiring, and local suppliers
More dollars retained in Hawaiʻi’s local economy
Why This Matters
Reducing excessive payment fees is not about technology or ideology. It is about fairness, transparency, and economic reality. When payment systems work better, Hawaiʻi businesses keep more of what they earn—and communities are stronger as a result.
Introduction
Hawaiʻi’s local businesses face some of the highest effective payment costs in the country. High card fees, limited negotiating power, and delayed settlement disproportionately impact small, independently owned merchants—especially in a tourism-driven economy where most transactions are card-present and low-margin.
Our focus is not abstract reform. It is practical payment policy that keeps more dollars circulating locally, strengthens small businesses, and improves economic resilience across the islands.
Challenge
National payment-cost models and existing market structures fail Hawaiʻi merchants in several key ways:
Card processing fees are set by national networks with limited local competition
Small merchants lack bargaining power to negotiate rates
Visitor-driven transaction volume is excluded from most fee analyses
High fees directly reduce margins, wages, and reinvestment capacity
These structural issues mean Hawaiʻi businesses pay more, while retaining less.
“Every percentage point lost to payment fees is a dollar that doesn’t stay in our community.”
The Problem
Hawaiʻi merchants face some of the highest per-capita swipe-fee burdens in the U.S.
National models underestimate total costs by ignoring visitor spending
Small businesses absorb fees directly due to thin margins
Lack of transparency limits informed policy and market reform
Our Policy Approach
We advocate for practical, merchant-focused payment reforms that operate within existing regulatory frameworks:
01. Fee Transparency
Clear disclosure of effective payment costs so merchants and policymakers can see the real economic impact.
02. Competitive Market Access
Support policies that encourage competition, innovation, and alternative payment options—without sacrificing consumer protection.
03. Merchant-Led Data Analysis
Use anonymized, aggregated transaction data to quantify real costs and identify inefficiencies unique to Hawaiʻi.
04. Regulatory Alignment
Ensure payment modernization strengthens oversight, compliance, and consumer protection rather than bypassing them.
Expected Outcomes
Lower effective payment costs for small merchants
Faster settlement and improved cash flow
Greater reinvestment in wages, hiring, and local suppliers
More dollars retained in Hawaiʻi’s local economy
Why This Matters
Reducing excessive payment fees is not about technology or ideology. It is about fairness, transparency, and economic reality. When payment systems work better, Hawaiʻi businesses keep more of what they earn—and communities are stronger as a result.
Add your business to the coalition record
Joining helps build an evidence-based record of payment costs faced by Hawaiʻi merchants.
Coalition members may be contacted for research validation, aggregated reporting, or policy briefings.
Participation is free. Joining does not commit you to any payment product or political position.
Information is used solely for research, aggregated reporting, and policy analysis.
Add your business to the coalition record
Joining helps build an evidence-based record of payment costs faced by Hawaiʻi merchants.
Coalition members may be contacted for research validation, aggregated reporting, or policy briefings.
Participation is free. Joining does not commit you to any payment product or political position.
Information is used solely for research, aggregated reporting, and policy analysis.
Related Causes
Related Causes
National payment-cost estimates systematically exclude visitor-driven transaction volume. In Hawaiʻi, this omission leads to materially understated merchant fees and distorted policy outcomes. This initiative documents the gap and proposes a more accurate, tourism-inclusive approach.
National payment-cost estimates systematically exclude visitor-driven transaction volume. In Hawaiʻi, this omission leads to materially understated merchant fees and distorted policy outcomes. This initiative documents the gap and proposes a more accurate, tourism-inclusive approach.
Hawaiʻi merchants face complex, opaque payment fees that are difficult to understand, compare, or challenge. This initiative promotes clear disclosure of effective payment costs so businesses, regulators, and policymakers can see where dollars are actually going—and where reform is needed.
Hawaiʻi merchants face complex, opaque payment fees that are difficult to understand, compare, or challenge. This initiative promotes clear disclosure of effective payment costs so businesses, regulators, and policymakers can see where dollars are actually going—and where reform is needed.
National payment-cost estimates systematically exclude visitor-driven transaction volume. In Hawaiʻi, this omission leads to materially understated merchant fees and distorted policy outcomes. This initiative documents the gap and proposes a more accurate, tourism-inclusive approach.
Hawaiʻi merchants face complex, opaque payment fees that are difficult to understand, compare, or challenge. This initiative promotes clear disclosure of effective payment costs so businesses, regulators, and policymakers can see where dollars are actually going—and where reform is needed.