Chamber Visits D.C. to Fight Small Business Fraud and Congestion Pricing
From Monday, May 20 to Wednesday, May 22, the Staten Island Chamber of Commerce traveled to Washington D.C. to meet with elected representatives, the U.S. Chamber of Commerce, and other key stakeholders to advocate for small businesses on Staten Island. Among the most pressing issues covered were small business fraud and congestion pricing.
The group met with N.Y. Senators Chuck Schumer and Kirsten Gillibrand, Congresswoman Nicole Malliotakis, and representatives from the U.S. Chamber of Commerce and Visa. The group included Chamber President and CEO Linda Baran and Chamber Marketing, Communications, and Member Relations Manager Dom Provenzano, as well as Tatiana Arguello (Nonprofit Staten Island), Roosevelt Board (Chick-fil-A Staten Island Mall), Danielle Hoffman (Aqua-Hoff Pools), Zoltan Kemeny (Zoltan Kemeny LLC), Janet Magnuson (Richmond Home Need Services Inc.), Henry Salmon (Equity Valuation Associates), Frank Scarangello (SCARAN), and Frank Wilkinson (Rab’s Country Lanes).
The issue most discussed concerned small business fraud and credit card chargebacks. Credit card chargebacks occur when a cardholder disputes a charge and initiates a refund from the issuing bank. While chargebacks serve as a consumer protection mechanism, they can pose significant financial burdens and operational challenges for businesses, especially small enterprises. These activities not only result in financial losses but also damage a company's reputation and erode customer trust.
The Chamber conducted a survey to analyze the situation, understand its implications, and bring it to the attention of elected representatives and overseeing agencies. The Chamber learned:
Respondents from a wide range of industries reported incidents, including restaurants, entertainment venues, professional services, construction and contractors, healthcare, and even nonprofits.
81.6% of respondents indicated that they were a victim of small business fraud, 60% of which was a result of credit card chargebacks. The next largest issue was check washing – another major small business fraud.
Over the past year, most respondents (31%) experienced between $1,000 – $9,000 in losses to fraud. 13% of respondents lost between $10,000 - $25.000, and 8% lost between $25,000 -$50,000.
Of those that experienced fraud, 74% indicated that they have experienced a significant increase in fraud over the past few years.
Throughout the trip, the team alerted representatives to the issue and brainstormed solutions.
Another topic of interest concerned to upcoming implementation of congestion pricing and its effect on Staten Island businesses. The Chamber advocated for a discount - or an elimination altogether - of congestion pricing-related fees for Staten Island businesses and civil servants, as well as an investment in Staten Island’s public transportation and expressway.
