The Electronic Payments Coalition (EPC) has responded to a bill introduced by D.C. Council member Charles Allen (D-Ward 6) — The Fair Swipe Act — that would prohibit banks and large credit card companies from including sales tax and gratuities when collecting swipe fees.
Allen announced the legislation on Feb. 20 at the Dubliner in Northwest in the presence of restaurant owners and Shawn Townsend, the president and CEO of the Restaurant Association of Metropolitan Washington (RAMW).
A spokesperson from the EPC issued a statement challenging the bill.
“Retail and restaurant sales in the District have increased by 90% and 56% respectively over the last decade driven, in large part, by credit and debit card purchases,” the EPC spokesperson said in the statement. “While we share Councilmember Allen’s goal to support local businesses, this bill is a misdirection.”
The coalition explained the challenges District business owners face.
“D.C. businesses have been increasingly saddled with new taxes and regulatory costs in recent years,” according to the EPC statement. “Meanwhile, the average interchange rate has remained flat for over a decade.”
“It’s also bad policy,” the spokesperson continued. “Credit cards are less expensive than the cost of cash, which is more than 4%, while protecting consumers from fraud and ensuring timely, efficient payments. In fact, some D.C. businesses just fought the Council’s effort to require them to take cash.”