D.C.:
Guard
Your Card

D.C. Councilmembers are pushing untested legislation that will create confusion, headaches, and inconvenience for anyone using or accepting credit or debit cards in the District.

The bill will prohibit interchange fees on the sales and gratuity portions of transaction – a proposal that the Biden-appointed Comptroller of Currency called “ill-conceived,” “bad policy,” and “largely unworkable.”

If passed, you will be forced to pay sales taxes and gratuities with cash or checks—while also putting your personal information at risk.

Interchange Benefits Everyone—Consumers & Businesses Alike
From 2013 to 2023, retail sales grew 90%, while restaurant sales climbed 56%, even factoring in the impacts of COVID-19.  What’s chiefly responsible for driving this surge in sales? The rise of electronic transactions, making payments safer, faster, and easier.

In order to sell goods and services to anyone, anywhere, anytime, D.C. businesses pay a tiny fee—around 2% per transaction—for credit and debit card processing.  This small fee, which has remained unchanged for 15 years, has helped:

    • Protect card networks from fraud
    • Cover the risk of customer non-payment
    • Fund reward programs that help families afford essentials like groceries, gas, and travel

But This Could Soon Change!

Declined! Credit Cards Won’t Work for Taxes & Tips
If the Council enacts Bill 26-138, your sales tax and tip will be excluded from your credit or debit card transactions. That means you’ll need cash—every time you make a purchase in D.C. Think about that!

A Massive Handout to Corporate Mega-Stores
So why is the D.C. Council trying to dismantle a convenient, secure, and efficient payment system? One reason: Big-box corporations like Amazon, Walmart, and Home Depot want to pad their profits. These giants are bankrolling trade groups to lobby for Bill 26-138 — at the expense of small businesses and consumers.

A Nightmare for Small Businesses & Consumers
While this bill might help mega-retailers, it’s a disaster for D.C.’s small businesses—many of which can’t afford the added complexity. Unlike Amazon and Walmart, small businesses don’t have massive accounting departments to absorb the cost of new payment processing systems.

And it gets worse. To comply with this bill, businesses would need to share even more details about your purchases—putting your privacy at risk.

D.C.: The Nation’s Guinea Pig—Again
No other state has implemented a law like Bill 26-138. Only Illinois has passed a law— and they are spending taxpayer resources defending the flawed law in court. Meanwhile, 29 other states have rejected similar legislation because it’s bad for consumers, bad for businesses, and bad for commerce.

Let’s not let D.C. embark on another failed experiment. Tell the Council: Hands off our cards!

Take Action

Tell D.C. leaders: D.C. 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 identity theft.

Contact Your Local Lawmakers Now

Avoid Credit Card Chaos

Who loses under D.C. Bill 26-138?

Small businesses would have to spend hundreds of dollars to upgrade their point-of-sale technology and deal with new accounting headaches. Small businesses pay the price; corporate mega-stores reap the benefits.
Consumers will have to pay for sales tax and tips 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.
Tipped workers would see their livelihoods negatively impacted when consumers are required to tip in cash, a particularly problematic scenario for gig workers who rely on electronic tips as part of their wages.
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.
District taxpayers would almost certainly see declines in sales and income tax collections, which help fund the District’s robust safety-net, as well as need to use scarce resources to defend legislation that is pre-empted by federal law.

Our Local Washington, D.C. Partners

Paid for by the Electronic Payments Coalition

www.electronicpaymentscoalition.org

1747 Pennsylvania Ave. Washington, DC 20006