By Matthew Holloway |
Arizona State Rep. Jeff Weninger (R-LD13) has targeted the hidden fees—also known as interchange fees—which are imposed by credit card companies every time a card is used for payment. These fees are charged on every transaction and can range from 1% to 5%. The lawmaker is calling for these fees, which are charged on transaction totals, including taxes, to be reformed to include only pre-tax totals.
Weninger penned an op-ed with the straightforward message that “It’s time to wipe the swipe on taxes.” He called upon members of the Arizona House of Representatives to support HB2629, legislation he has sponsored to force credit card companies to eliminate swipe fees on sales taxes.
He wrote in part, “The credit card industry is dominated by two major players—Visa and Mastercard—who control 90% of payment processing transactions outside of China. These companies are raking in record profits, while Arizona businesses are left footing the bill for an unfair, hidden charge.
“HB2629 will stop this practice and ensure Arizona businesses and consumers are treated fairly. By eliminating swipe fees on sales taxes, we can keep more money in our state’s economy, help small businesses grow, and prevent credit card companies from profiting off of money that should go back to our communities.”
The National Federation of Independent Business (NFIB) announced its support for the bill with NFIB State Director Chad Heinrich explaining in a statement, “HB 2629 will protect small businesses and keep more resources in Arizona for Arizonans. Today, millions of dollars, which could be better spent in Arizona on higher employee wages, better benefits, and business expansion, are instead being sent to out-of-state banks and major credit card companies that profit off Arizona state and local taxes.”
As noted in Weninger’s op-ed, Arizona businesses and consumers combined paid out over $217 million in interchange fees in 2023. According to Weninger, it’s “a fee on a fee that never should have existed in the first place.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
