The American Financial Services Association (AFSA) has formally opposed Puerto Rico Senate Bill 675, which seeks to limit interchange fees by excluding gratuities and sales tax from the fee calculation. In a comment letter submitted to the Puerto Rico Senate, AFSA’s State Government Affairs team expressed concerns that such measures could disrupt the electronic payment system and compel financial institutions to provide services without compensation.
According to AFSA, similar legislation has been rejected in more than 30 states, with Illinois as the only exception. The association noted that Illinois’ experience has resulted in ongoing litigation and unintended consequences.
AFSA cautioned lawmakers about potential negative outcomes of SB 675. The organization stated that the bill could create a fragmented payment system, raise fraud risks, and negatively impact consumers, businesses, and the wider economy.
Information about this letter and other advocacy materials is available on AFSA’s direct advocacy section of its website.
"AFSA warns this could disrupt the electronic payment system and force financial institutions to provide services for free. This type of legislation has already been rejected in more than 30 states (Illinois is the lone exception, which has led to ongoing litigation and unintended consequences)."
"AFSA urges a careful review of the bill, noting that it could create a fractured payment system, increase fraud risks, and ultimately harm consumers, businesses, and the broader economy."