WASHINGTON – In a recent issue of their magazine, the National Retail Federation (NRF) addressed the longstanding dynamic of Main Street small businesses versus big box retailers, concluding that perhaps the reports on the death of downtown may have been premature. Writer Fred Minnick goes on to recount how Main Street retailers have enjoyed a resurgence in the past decade, using the Internet to their advantage and offering goods and services that Big Boxes lack.

The topic is fitting, as the Small Business Administration celebrates National Small Business Week the first week in May. And while the demise of small business was exaggerated, there’s no disputing that small retailers face significant challenges, among them how consumers pay for items, says NR, pointing specifically to credit card “swipe” fees that cost retailers an estimated $30 billion annually. (The convenience and fuel retailing industry paid approximately $11.4 billion last year in swipe fees – $1 billion more than the industry’s total pre-tax profits.)

Since swipe fees are based in part on a merchant’s card transaction volume, small businesses bear a disproportionate share of the burden, says NRF. And while those in the card industry say small retailers that don’t accept credit cards are creating more problems than they are solving, NRF Senior Vice President and General Counsel Mallory Duncan disagrees.

“Small retailers need to consider all the issues before deciding to accept credit cards,” Duncan said in the article. “They need to know that they are going to give up roughly 2% of their revenue to fees and are going to subject themselves to data security requirements. And the idea that consumers spend more if you accept credit cards is a myth — unless they want to end up bankrupt, consumers still can’t spend more than their income, and the various fees and interest paid on credit cards actually reduce their buying power .”