WeVote
Log In

Bill

Bill

SD 762

An Act prohibiting card interchange fees on tax or gratuity

194th Legislature (2025-2026) Introduced by Cynthia Creem

Massachusetts bill bans credit card interchange fees on tips and taxes to reduce consumer costs and merchant processing expenses on these routine charges.

0
WeVote Research Nonpartisan
Bill Summary · SD 762

Legislative bill overview

SD 762 would prohibit credit and debit card companies from charging interchange fees (processing charges) when customers add tips or taxes to their bill. The bill specifically targets the fees merchants currently pay to card networks when processing these additional amounts, which are passed along to consumers.

Why is this important

Interchange fees on gratuities and taxes effectively increase the cost of dining and services beyond the stated price, with the fees benefiting card networks rather than workers or businesses. This is particularly relevant as digital tipping has become ubiquitous, making these charges more visible and frequent to consumers concerned about rising service costs.

Potential points of contention

  • Card network opposition: Visa, Mastercard, and American Express would likely argue this reduces their revenue and could impact their service investments, potentially raising fees elsewhere
  • Merchant impact uncertainty: While intended to help merchants, some may not pass savings to consumers, and the cost-benefit analysis depends on transaction volumes and fee structures
  • Interstate commerce concerns: Since card networks operate nationally, Massachusetts acting alone may face legal challenges under federal commerce regulations or create compliance complexity for multi-state merchants
  • Narrow scope: The bill only addresses tips and taxes, leaving other fees untouched, which some argue is an incomplete solution to broader interchange fee concerns

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

Sign in to ask a question.