The House Economic Matters Committee is scheduled to hold a hearing on January 21 to discuss House Bill 29, which proposes excluding taxes and tips from interchange fees on debit and credit card transactions. The Association plans to testify in opposition to the bill, emphasizing how it would benefit large retailers while harming small businesses and consumers.

The Advocacy Team is collaborating with the Maryland Bankers Association, Visa, Mastercard, Velera, and other stakeholders to educate lawmakers on the critical role interchange fees play in supporting fraud prevention, transaction processing, and secure payment systems.

If enacted, the legislation would impose the following requirements on companies handling electronic payments:

• Exclude Taxes and Tips from Interchange Fees: Taxes and tips included in transactions would need to be excluded when calculating interchange fees.
• Refund Fees on Taxes and Tips: Credit and debit card issuers would be required to refund merchants the interchange fees associated with taxes and tips, provided the merchant submits proper documentation.

The Association will submit a formal comment letter and deliver testimony at the committee hearing to outline the negative impacts of the proposed legislation.