The Delaware General Assembly took up the issue of swipe fees with House Bill 315. This bill prohibits payment card networks from charging swipe fees on tips on credit card transactions. Though limited in scope, HB315 signals the legislature is willing to take action on this critical issue. The legislation has been voted out of committee and is now awaiting action by the full House.

NFIB has advocated on this issue at the federal level – Congress is considering legislation to inject competition into the credit card market and bring down swipe fees. One proposal would require most credit cards to have two network options, giving small merchants an option to choose whichever one has lower swipe fees.

TAKE ACTION: Urge your elected officials to support reform of credit card processing 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.