Bill
S 5587
Bill S 5587 excludes taxes from credit card transaction fees, lowering costs for consumers and businesses, and promoting fairer payment processing.
Title: Relates to excluding taxes from the amount on which credit card transaction fees are based
Bill Number: S 5587
Status: Referred to Consumer Protection
Introduced: February 25, 2025
Classification: Bill
Bill S 5587 aims to amend the current framework governing credit card transaction fees by excluding taxes from the total amount upon which these fees are calculated. The primary intent of this legislation is to reduce the financial burden on consumers and businesses by ensuring that transaction fees are only applied to the non-tax portion of a purchase.
Exclusion of Taxes: The bill specifically states that any taxes applied to a transaction should not be included in the calculation of credit card transaction fees. This means that only the base price of goods or services will be considered when determining the fee charged by credit card companies.
Impact on Transaction Fees: By excluding taxes, the bill seeks to lower the overall transaction fees that consumers and merchants face when processing credit card payments. This could lead to significant savings for both parties.
Consumers: Individuals making purchases with credit cards would benefit from potentially lower transaction fees, as the fees would be calculated on a reduced amount.
Businesses: Merchants accepting credit card payments would also see a decrease in the fees they incur, which could improve their profit margins and allow for more competitive pricing.
Credit Card Companies: The bill may affect the revenue model of credit card companies, as their transaction fees would be lower due to the exclusion of taxes.
Introduced Date: The bill was introduced on February 25, 2025, and has been referred to the Consumer Protection committee for further consideration.
Related Legislation: This bill is related to prior-session Bill S 7973 and has a companion bill, A 4017, which may provide additional context or support for its objectives.
Bill S 5587 represents a significant shift in how credit card transaction fees are calculated, focusing on consumer protection and financial relief for both consumers and businesses. By excluding taxes from the fee calculation, the bill aims to foster a more equitable payment processing environment. As the bill progresses through the legislative process, its potential impacts on the economy and consumer behavior will be closely monitored.
Compiled from official sources — confirm details with the bill’s official record.
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