The Delaware General Assembly addressed the issue of swipe fees with House Bill 315, which prohibits payment card networks from charging swipe fees on tips for credit card transactions, according to a Mar. 31 announcement. The bill has passed out of committee and is now awaiting action by the full House.
This development is important for small businesses that have long faced high processing costs when accepting credit cards. HB315 represents a step toward addressing concerns about how these fees impact business owners in Delaware.
The National Federation of Independent Business (NFIB) has advocated on this issue at the federal level as well. Congress is currently considering legislation that would require most credit cards to offer two network options, allowing merchants to choose whichever network offers lower swipe fees. “While the recent anti-trust settlement with Visa and Mastercard offers temporary relief to small businesses, the current system, where Visa and Mastercard set the interchange fee that every small business pays to every bank, amounts to price fixing. Congress must reform the system to allow the free market and real competition to set the interchange rates,” NFIB said.
The NFIB works across Delaware promoting growth-oriented policies and providing resources for independent business owners according to its official website. The organization also mobilizes members on key legislation affecting taxes and labor issues according to its official website, while offering educational materials, business assistance, and legislative alerts according to its official website.
As debate continues over HB315 in Delaware’s legislature and similar proposals are considered nationally, advocates say reforms could help foster more competitive practices in payment processing. The NFIB maintains primary operations throughout Delaware as it supports local enterprises according to its official website.
