Pennsylvania lawmakers are considering legislation to prevent credit card companies from charging swipe fees on the sales tax portion of transactions, aiming to alleviate costs for small businesses like those at the Broad Street Market in Harrisburg.Tito Tep, owner of Tep’s Fresh Seafood, expressed the challenges small business owners face due to credit card transaction fees.”We’re not Walmart, we’re not Costco,” Tep said, highlighting the difficulty in bearing the costs of every card swipe.Advanced legislation House lawmakers advanced legislation this week to bar credit card companies from charging the swipe fee on the sales tax part of a transaction. Rep. Steve Samuelson, D-Bethlehem, said, “The cost is one of the things that a merchant has to struggle with a thin profit margin. They’re trying to hold down costs for competition, but they have rising costs on the front end, so they’re in a tight spot and it leads to higher costs for the consumers.”However, some Republicans on the House Finance Committee argued that the legislation would merely shift the costs of doing business to banks and other financial institutions. Rep. Tom Kutz, R-Middlesex Township, said, “What you’re proposing is actually in this case, is going to be harmful to smaller financial institutions like community banks and credit unions, who actually are ones who finance the community projects that we want.”Argument for swipe feeKevin Shivers, president and CEO of the Pennsylvania Association of Community Bankers, explained the importance of the swipe fee in ensuring seamless and secure transactions. “All of that happens in a blink of an eye, and there’s a lot of security and a lot of cost to make sure that there’s no fraud in the system and to make sure that it operates seamlessly,” Shivers said.

HARRISBURG, Pa. —

Pennsylvania lawmakers are considering legislation to prevent credit card companies from charging swipe fees on the sales tax portion of transactions, aiming to alleviate costs for small businesses like those at the Broad Street Market in Harrisburg.

Tito Tep, owner of Tep’s Fresh Seafood, expressed the challenges small business owners face due to credit card transaction fees.

“We’re not Walmart, we’re not Costco,” Tep said, highlighting the difficulty in bearing the costs of every card swipe.

Advanced legislation

House lawmakers advanced legislation this week to bar credit card companies from charging the swipe fee on the sales tax part of a transaction.

Rep. Steve Samuelson, D-Bethlehem, said, “The cost is one of the things that a merchant has to struggle with a thin profit margin. They’re trying to hold down costs for competition, but they have rising costs on the front end, so they’re in a tight spot and it leads to higher costs for the consumers.”

However, some Republicans on the House Finance Committee argued that the legislation would merely shift the costs of doing business to banks and other financial institutions.

Rep. Tom Kutz, R-Middlesex Township, said, “What you’re proposing is actually in this case, is going to be harmful to smaller financial institutions like community banks and credit unions, who actually are ones who finance the community projects that we want.”

Argument for swipe fee

Kevin Shivers, president and CEO of the Pennsylvania Association of Community Bankers, explained the importance of the swipe fee in ensuring seamless and secure transactions.

“All of that happens in a blink of an eye, and there’s a lot of security and a lot of cost to make sure that there’s no fraud in the system and to make sure that it operates seamlessly,” Shivers said.