Small Businesses Under Pressure: Debit Card Fee Battles and Independent Contractor Policy Changes

Debit Card Processing Fee Cap Under Fire

Every time a customer pays with a debit card, the business pays a processing fee. The Federal Reserve has capped that fee since 2011 under the Durbin Amendment, but a new lawsuit argues the cap is set too high and doesn't reflect actual processing costs — meaning small businesses have been overcharged for years.

The suit also challenges the lack of competition among payment networks. Right now, most debit transactions route through Visa or Mastercard, and businesses have limited ability to choose lower-cost alternatives. For a student-run e-commerce brand or a campus food vendor processing dozens of small transactions a day, those fees add up fast.

Independent Contractor Rules Are Changing

The Department of Labor has announced policy changes that could reshape how businesses classify the people they hire. The new guidance makes it harder to classify workers as independent contractors, pushing more arrangements toward full employee status — which comes with payroll taxes, benefits obligations and additional compliance requirements.

For startups that rely on freelancers, gig workers or contract designers and developers, this changes the math. A founder who hires three freelancers to build an MVP may now face questions about whether those workers should be classified as employees. The compliance burden alone can stall an early-stage company.

	Review your payment processor fees. Compare what you're paying per transaction against competitors. Even a few cents per swipe compounds over hundreds of sales.
	Audit your contractor relationships. If someone works set hours, uses your tools and only works for you, they may legally be an employee — regardless of what your contract says.

	Use written agreements. Every contractor relationship should have a signed agreement that defines scope, deliverables and payment terms. It protects both sides.
	Stay informed. Policy changes like these affect your bottom line. Follow CEO's legislative updates and NFIB's reporting to stay ahead of shifts that impact your business.