Stay Informed
Pennsylvania cannot afford the credit card chaos these untested bills will cause. Small businesses cannot afford the new costs and cardholders will not tolerate the loss of convenience and privacy these new changes will bring – just so corporate mega-stores and nationwide convenience chains can pocket more money. The current credit and debit card processing system works and provides valuable services by facilitating efficient purchases, universal acceptance and state-of-the-art protections against fraud and personal identity theft.
Sign Up TodayHOW HB 2090 & SB 1202 WILL WREAK HAVOC IN PENNSYLVANIA
HB 2090 and SB 1202 would create credit card chaos for consumers, small businesses and local financial institutions. Here’s why:
They face increased costs and headaches while corporate mega-stores reap the benefits.
These vital financial institutions would face burdensome compliance and excessive fees that threaten their viability.
Today, businesses of all sizes accept cards seamlessly because standardized default interchange rates keep the system simple and predictable. Without universal access, merchants would be forced to negotiate rates directly with hundreds of banks and credit unions worldwide — an unworkable system that would lead to lost sales and frustrated customers who won't know if their card works until it is rejected at the point of sale.
Because HB 2090 and SB 1202 prohibit interchange on taxes, consumers would be forced to pay the sales tax portion in cash, requiring two separate transactions for a single purchase.
Eroding interchange state by state puts businesses and consumers at risk by jeopardizing funding for fraud prevention and cybersecurity investments that keep card payments secure.
Interchange funds popular credit card rewards programs that consumers depend on — including airline, hotel, and cash-back cards — and these programs are likely to disappear if interchange revenue is eroded state by state.
The state will have to use taxpayer money to defend these policies against legal challenges.
Resources
Our Local Pennsylvania Partners
Paid for by the Electronic Payments Coalition www.electronicpaymentscoalition.org 1747 Pennsylvania Ave. Washington, DC 20006