PA House Committee Moves Proposal To Eliminate Credit Card Fees On Sales Tax

Last week, the Pennsylvania House Finance Committee approved HB 2394 in a party-line vote. The legislation would ban credit and debit swipe fees from being charged on sales tax. The bill has since been referred to the House Rules Committee with a chance it could be voted on the House floor in the upcoming weeks.

The PPA supports credit card processing (swipe fees) reform on both a state and federal level. The PPA joined other retailer associations to advocate for the committee passage House Bill 2394 (click here to view coalition letter). The PPA also urges our membership to engage in contacting your Congressional representatives to support the federal Credit Card Competition Act.

The necessity for credit card processing reform will continue to intensify as retailers are forced to pay exuberant fees. In December 2023, Sheetz testified at a House Finance Committee hearing that the company “paid $78.2 million in swipe fees this past year, and of that total $1.3 million was simply from processing sales tax.” Earlier this year, the Illinois State Legislature passed the Interchange Fee Prohibition Act. This is the first state-based legislation passed in the country to eliminate swipe fees on sales taxes, state excise taxes and gratuities. Read more about that bill here.