It’s no secret that many in our state are deeply rooted in faith, family, and community. Kentucky’s religious institutions have long been a cornerstone of our culture and connectivity. This is particularly evident in the Lexington and Louisville areas, which hosts more than 50 denominations and religious groups, with over 230 churches, synagogues, mosques, and temples in the city and its suburbs.
The generosity of Kentuckians, who contribute what they can regardless of their means, enables these denominations to continue offering essential services, including the ministry of charitable support that allows us to remain a place where people unite through shared values and community spirit. Unfortunately, a bill proposed in Congress this year by Lexington’s Rep. Andy Barr — who was re-elected in November and is reportedly vying to chair the powerful House Financial Services Committee — would reduce how much of those donations churches and other religious institutions can actually put toward their good works on behalf of our community.
At the Kingdom Fellowship Christian Life Center, where I serve as senior pastor, we understand that offerings and donations are vital for the financial wellbeing of the church. So, like many other churches in Kentucky, we aim to make generosity convenient by accepting credit and debit card payments for donations.
At Kingdom Fellowship, we try to meet the needs of members of our church as well as the community from Louisville, Lexington and surrounding areas. We have a food pantry, work force development, assistance to seniors as well as mentoring and tutoring for youth and public school students.
However, by accepting electronic payments, we, like the family owned shops and small businesses that form our community’s backbone, are subject to a hidden “tax.” That’s because every time a person uses a credit or debit card, the payee must pay a hidden “swipe fee” to the banks. In 2023, payees including Main Street retailers and other merchants, nonprofit charities, and religious organizations paid $172 billion in credit and debit card swipe fees — an 8 percent increase from the previous year and an over 200 percent increase from a decade earlier.
Swipe fees don’t just hurt Main Street stores or restaurants — they apply to church donations as well. Visa, Mastercard, and the banks take a portion of every donation made with a credit or debit card. These hidden fees enrich banks while diminishing the impact our church can make in the community.
Now, those same big card brands and banks are trying to push even higher hidden swipe fees through Congress, with Rep. Barr as the prime sponsor. HR 8337 would allow banks to increase debit card swipe fees by $5 billion a year, hurting consumers, businesses and nonprofits at a time of high inflation.
Rep. Barr, unsurprisingly, seems to have lost the way in representing the wellbeing of those who sent him there in the first place. He is prioritizing out-of-state, big-city banks over the generous hardworking Kentuckians he represents. It should come as no surprise that those who stand to benefit the most from Rep. Barr’s legislation are among his biggest donors. Of his top donors by industry, commercial banks rank second, having contributed more than $240,000, while securities and investments — big investment firms that work closely with the banking industry — top the list, contributing over $400,000 to Rep. Barr’s campaign efforts in this cycle alone.
Americans deserve a fair and transparent debit card market, and HR 8337 is a move in the wrong direction. Everyone loses with hidden swipe fees. Merchants often have to pass some costs onto consumers by raising prices; but for churches, there are no costs to pass on — there is just less money to invest in our ministry of service to the community.
Instead of exacerbating the issues within an already broken system, Congress needs to fix it. Fortunately, a bill is being considered in the Senate that would lower swipe fees by introducing competition into the credit card market. The Credit Card Competition Act of 2023 (CCCA) would help create a competitive market that could save consumers and merchants an estimated $11 billion annually.
Elected officials often face tough choices and must balance various tradeoffs in pursuit of the best outcomes for their community and the country. This is not the case here. Rep. Barr has the choice to side with the faith of the people of Kentucky and cultural institutions and Main Street businesses or to side with Wall Street and its predatory practices. I, along with many faith leaders, am praying he chooses his community.
Rev. Timothy F. Findley Jr. is senior pastor of the Kingdom Fellowship Christian Life Center and CEO of ElderServe, a senior center and adult day care.
