WeVote
Log In

Bill

Bill

HB 5990

AN ACT CONCERNING INTERCHANGE FEES ON ELECTRONIC PAYMENT TRANSACTIONS.

2025 Regular Session Introduced by Jason Perillo

Connecticut bill HB 5990 proposes regulating interchange fees on electronic payment card transactions to potentially reduce merchant costs and consumer prices.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#electronicfundstransfers #fees #salesandusetax
0
WeVote Research Nonpartisan
Bill Summary · HB 5990

Legislative bill overview

HB 5990 addresses interchange fees—the charges that merchants pay to payment card networks and banks when customers use credit or debit cards. The bill, currently referred to Connecticut's Finance, Revenue and Bonding Committee, would regulate these fees on electronic payment transactions, though specific provisions are not yet publicly detailed in available legislative records.

Why is this important

Interchange fees directly impact consumer prices, as merchants pass these transaction costs onto customers through higher prices on goods and services. Small businesses and retailers are particularly sensitive to these fees, which can constitute a significant operational expense. Regulating interchange rates could influence pricing, business profitability, and payment system economics.

Potential points of contention

  • Federal preemption concerns: The Dodd-Frank Act and other federal banking regulations may limit states' authority to regulate interchange fees, potentially creating legal conflicts
  • Economic impacts on financial institutions: Banks and payment networks rely on interchange revenue; caps could reduce lending incentives or increase banking fees elsewhere
  • Merchant pass-through uncertainty: While intended to lower consumer prices, merchants may retain savings rather than reduce prices, limiting consumer benefits
  • Market complexity: Interchange rates vary by card type and transaction; determining appropriate regulatory levels requires technical expertise and could create unintended consequences

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.