Support HB2629 to stop credit card companies from profiting off our state taxes.
Credit card companies are charging Arizona businesses processing fees not just on goods and services but their taxes too.
How Swipe Fees Work
Large banks and financial institutions charge a swipe fee (interchange fee) from merchants and organizations to accept credit and debit card payments from their customers. Rates vary widely from 1% to 5% per transaction.
Retailers and merchants are responsible for collecting and remitting sales tax for the state at their own expense. Currently, swipe fees are charged to the post-tax amount allowing credit card companies to profit off the sales tax charged to consumers. It also creates a situation where credit card companies can make a larger profit than the retailer on transactions.
HB2629 would amend state law to require credit and debit card companies to charge swipe fees on the pre-tax amount of a transaction.
Impact of Swipe Fees
U.S. retailers now pay around $160 billion in annual swipe fees.
Consumers pay an average of $1,100 per year in passed down costs from swipe fees.
Low-income consumers are disproportionally affected and pay an average of 60 cents more per transaction.
Swipe fees are up nearly 50% since the pandemic.
Arizona business owners paid over $217 million in swipe fees on sales taxes in 2023!
The existing practice of including sales tax in swipe fee charges essentially serves as a double tax on Arizona businesses. Visa and Mastercard control 90% of payment processing transactions outside of China and are earning record profits from this one unfair fee.
If passed, HB2629 would eliminate this hidden bank fee, protect Arizona businesses, and keep more money in the Arizona economy.
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Arizona Retailers Association
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Arizona Retailers Association • National Federation of Independent Business • Local First Arizona • Arizona Petroleum Marketers Association • Arizona Restaurant Association • Ruggiero Ace Hardware Stores •