Why many business owners would love it if you stopped using your credit card

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The fees merchants pay for accepting credit cards are much higher in the U.S. than in Europe. Ice cream shop owner Victor Garcia, for example, paid more than $25,000 in swipe fees last year.

Customers at SolDias ice cream shops in Texas are encouraged to pay with cash instead of credit cards. Owner Victor Garcia is backing a legislative effort that aims to lower credit card processing fees through increased competition.

"Most are shocked," Garcia says."Half of them say, 'Gosh, I have no cash. I wish I did.' People don't know. They just say, 'Hey, I get points, so I'm going to use my card.'"Retailers have long complained the so-called"swipe fees" they have to pay for accepting credit cards in the U.S. are much higher than those in Europe, where the fees are strictly regulated.

Some lawmakers are hoping to reduce swipe fees by promoting increased competition in the processing of credit card transactions. "In general, these fees are just baked into the cost of everything we buy," says Kantor, who is general counsel for the National Association of Convenience Stores."Even consumers who are cash-payers and maybe can't even qualify for a credit card pay more for every good that they buy than they really should."

Banks and the credit card networks are pushing back, arguing the measure would jeopardize security and credit card rewards.

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