Pennsylvania Lawmakers Consider Credit Card Fee Legislation

Pennsylvania legislators are looking into a bill that would prevent credit card companies from imposing swipe fees on the sales tax part of transactions. This move is aimed at alleviating financial pressures on small businesses, such as Harrisburg’s Broad Street Market.

Tito Tep, who owns Tep’s Fresh Seafood, highlighted the difficulties that small business owners encounter due to credit card fees. “We’re not Walmart or Costco,” he mentioned, pointing out the struggle to bear the cost associated with each card transaction.

Advancement of the Bill

A lawmaker recently introduced a bill intended to eliminate swipe fees on the sales tax component of transactions.

Rep. Steve Samuelson, D-Bethlehem, discussed the issue, noting, “Cost is a significant concern for retailers who operate on thin profit margins. They’re trying to keep expenses manageable to stay competitive, but rising upfront costs are pushing them into a corner, ultimately leading to higher prices for consumers.”

Conversely, some Republicans on the House Finance Committee expressed that the bill might merely transfer business costs onto banks and other financial institutions.

Rep. Tom Kutz, R-Middlesex Township, stated, “What you’re suggesting could harm smaller financial entities, like community banks and credit unions, which are vital in supporting the local projects we wish to see.”

Arguments Regarding Swipe Fees

Kevin Shivers, president and CEO of the Pennsylvania Community Bankers Association, spoke about the essential role of swipe fees in facilitating secure and efficient transactions.

“These transactions occur almost instantaneously. Ensuring security and preventing fraud requires significant resources,” Shivers remarked.