TOPEKA — National Federation of Independent Business lobbyist Dan Murray this week urged Kansas legislators to forbid credit or debit card companies from collecting swipe fees on tip and tax portions of electronic transactions, Kansas Reflectors reported.
Murray noted that Swipe fees have doubled since 2012.
“Unfortunately, credit card processing fees, which can range from 1.5% to 3.5% on each transaction, exacerbate the financial strain of Main Street, making it harder for employers to expand their operations, raise wages and keep their costs competitive,” Murray said.
Under the proposed Consumer Inflation Reduction and Tax Fairness Act contained in House Bill 2089, issuers of debit or credit cards wouldn’t be able to charge a Kansas merchant an interchange fee on the tax or gratuity amounts of an electronic transaction. The bill would give merchants 180 days after the date of a payment transaction to report to card companies the amount of gratuity and tax, Kansas Reflectors said.
The bill would enable merchants, a county or district attorney and the state attorney general to seek a restraining order against violators of the law.
As CUToday.info has extensively reported, America’s Credit Unions, the Illinois Credit Union League, and banking groups are currently challenging to the Illinois Interchange Fee Prohibition Act.