The Electronic Payments Coalition (EPC) has raised concerns about newly introduced legislation in the Pennsylvania House of Representatives, warning that it could make the state an outlier in its treatment of electronic payments. The measure, H.B. 2394, aims to prohibit financial institutions from collecting interchange fees on the sales tax portion of credit and debit card transactions. Interchange fees are the costs merchants pay for transmitting payments electronically.
"This draconian provision could require businesses to pass along details about every consumer purchase, force new costs on small businesses and not benefit the commonwealth one iota," said EPC Executive Chairman Richard Hunt. "What it will do, however, is jeopardize the secure, convenient card payment systems used by Pennsylvania families and small businesses, just to line the pockets of corporate mega-stores."
Hunt pointed to a similar provision in Illinois that was included in the state's budget over Memorial Day Weekend and is set to take effect in July 2025. He noted that no other state or country has implemented such a program due to technical hurdles, costs to small businesses, and consumer privacy concerns. The Chicago Tribune editorial board has called for a repeal of the Illinois provision to avoid "credit card chaos."
For more information, visit www.electronicpaymentscoalition.org or www.GuardYourCard.com/Pennsylvania.
###