Arizona:
Guard
Your Card

What’s at Stake in Arizona

Arizona lawmakers have introduced legislation to completely upend the way your credit and debit cards work – creating confusion for consumers, higher costs for small businesses and jeopardizing your privacy.

Interchange benefits business and consumers
Businesses pay a small percentage of each purchase – approx. 2% – for credit and debit card processing services. That fraction is used to safeguard credit card networks, prevent fraud, and fund reward programs families of all incomes use for essentials like groceries and gas or to help afford family trips.

But a bill in Arizona would create a carveout so the tax portion of your purchase is processed differently.

A massive handout to corporate mega-stores
So why are some Arizona politicians trying to change the easy, convenient, hassle-free and secure credit and debit card system we rely on every day? Because corporate mega-stores, grocery conglomerates, and the largest convenience store chains are trying to pocket more money.

A burden to small business & consumers
But small businesses can’t afford this change. If HB 2629 passes, Arizona small business owners, who are already on tight margins, could have to pay for new card processing systems and implementation of new accounting headaches.

Worse yet, to ensure your transaction is accurately processed under the new changes, businesses could have to share additional information about the purchase you make – potentially compromising your privacy.

This is why no other state in the country – or no other country around the world – processes credit and debit card transactions this way. In fact, 29 other states have rejected this idea because of the impact and hurdles it would have on commerce across the state – just so the big guys can make more money.

Take Action

Tell your state’s leaders: Arizona cannot afford the credit card chaos this experimental bill 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 for consumers and provides a valuable service to small businesses by facilitating efficient purchases, universal acceptance, and state-of-the-art protections against fraud and personal identity theft.

Contact Your Local Lawmakers Now

Avoid Credit Card Chaos

Who pays the price if the legislation moves forward?

Small businesses would need to upgrade their point-of-sale technology and deal with new accounting headaches — while getting little of the benefit corporate megastores would receive.
Consumers could have to pay for sales tax in cash if the bill moves forward, and private information about what consumers are purchasing will be required to be shared. What’s more, because interchange is what makes rewards and points possible for consumers, reductions to interchange will also reduce the rewards they receive.
Local banks and credit unions would be put at a disadvantage against national competitors as a ruling on similar legislation in Illinois and an opinion from the Maryland Attorney General indicates the law would only apply to your local community bank and credit union, many solely serving public service employees and retirees.
The state would need to use scarce resources to defend legislation that is pre-empted by federal law.

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