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Bill

SB 5363

Modernizing payment systems by expanding consumer-friendly transaction options for registered tow truck operators and regulated businesses.

2025-2026 Regular Session Introduced by Mike Chapman and 3 co-sponsors

Authorizes regulated businesses including tow operators to charge credit card fees up to 3%, with a guaranteed no-cost option and disclosure at payment.

First reading, referred to Business, Financial Services & Trade.
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WeVote Research Nonpartisan
Bill Summary · SB 5363

Summary: Senate Bill 5363 (2025 Regular Session) – Washington

Overview

  • Bill: SB 5363
  • Title: Modernizing payment systems by expanding consumer-friendly transaction options for registered tow truck operators and regulated businesses
  • Status: First reading, referred to Committee on Business, Financial Services & Trade
  • Introduced: January 20, 2025
  • Legislative context: Adds a new section to RCW Chapter 19.200 to authorize credit card transaction fees for regulated businesses, with specific consumer protections and a 3% cap

Purpose and intent

The bill aims to modernize payment options for regulated businesses, notably registered tow truck operators, by allowing them to recover credit card processing costs in a transparent, consumer-friendly manner. It cites the financial strain on regulated operators due to unreimbursed tows and compliance costs and compares regulated businesses to unregulated ones that can currently pass credit card fees to consumers. The measure seeks to create a fairer economic framework while maintaining consumer choice and transparency.

Key provisions

  • New authority for regulated businesses to charge a transaction fee for credit card payments, with safeguards:
    • No-cost payment option must always be available to the consumer.
    • The no-cost option must be disclosed to the consumer at the same time and in the same manner as the credit card information is collected.
    • Transaction fee cap: the fee may not exceed 3% of the payment amount.
  • Scope and definitions:
    • “Credit card payment” includes any payment made by a payment card that incurs an interchange fee, regardless of card type.
  • Purpose and framing:
    • The act intends to align regulated businesses with existing state and unregulated practices regarding credit card fee recovery to support small businesses that provide essential public safety services.

Affected entities

  • Regulated businesses in Washington state, including registered tow truck operators
  • Consumers making payments to regulated businesses for fees or services
  • State systems and agencies that interact with regulated fee structures may indirectly be affected by administrative implementation

Procedural and timeline aspects

  • Status: First reading, introduced January 20, 2025; referred to the Committee on Business, Financial Services & Trade
  • No specific effective date is provided in the text excerpts; implementation would depend on passage, potential rulemaking, and any transitional provisions adopted by the legislature

Potential impact (high-level)

  • Economic: Provides a mechanism for regulated businesses to recover some credit card processing costs, potentially improving liquidity for operators facing unreimbursed tows and regulatory compliance costs.
  • Consumer experience: Maintains a mandatory no-cost payment option to protect consumers; fees are disclosed at the point of payment.
  • Fairness and competition: Seeks parity between regulated and unregulated sectors regarding fee recovery, while preserving consumer transparency and choice.

Note: This summary reflects the bill text as introduced and does not cover any amendments that may be adopted during committee consideration or floor action.

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

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