A bill that would seek to reduce credit card “swipe fees” is gaining steam in the Pennsylvania House, but its chances of passing the Senate appear slim.
A bill that would aim to reduce the “swipe fees” credit card companies charge merchants is building support in the Democrat-led Pennsylvania House of Representatives.
However, state Senate Republican leadership has made it clear the bill is going nowhere in the GOP-controlled upper house.
Republican Senate Majority Leader Joe Pittman told Spotlight PA, “There’s a lot of spin and swirl on that issue” and predicted the bill would be unlikely to reach the Senate floor.
Credit card companies charge merchants “swipe fees” on every credit or debit card transaction and can be a significant cost for sellers.
These fees can range between 1.4% to 3.5% and often result in producers passing costs along to consumers in the form of higher prices or additional charges or fees.
The bill under consideration in the state House would make a modest dent in the size of “swipe fees” by preventing credit card companies from applying fees to Pennsylvania sales tax.
Businesses like Sheetz and trade associations including the Pennsylvania Food Merchants Association support the bill, while large banks like JPMorganChase and Wells Fargo oppose the bill. ‘
A spokesperson for Democratic Governor Josh Shapiro told SpotlightPA that the governor has declined to take a position on the bill at this time.
