Swipe Fees on Taxes and Tips!
Sneaky. Hidden. Unfair. Join the movement to ban swipe fees on taxes and tips, supporting California’s small businesses and fostering economic fairness.
Banks’ Double Dip on Your Dollars
California requires businesses to collect and remit sales taxes and tips, at their own expense, as a condition of doing business. Credit and debit card companies charge businesses a “swipe fee” — usually 2 to 4% — for using their network, even on taxes and tips. Those little charges add up. In 2023, California merchants paid $1.7 billion in swipe fees on sales tax alone.
Coalition
From restaurants to grocery and convenience stores, Main Street businesses operate on razor thin profit margins while the Visa and Mastercard collect record profits.
AB 1065
AB 1065 by Asm. Liz Ortega (D-San Leandro) would prohibit swipe fees on taxes and tips, saving retailers and other merchants money while providing savings for consumers that can’t come soon enough.
The Consumer Cost
The average US family spent $1,102 on credit and debit swipe fees in 2023--this bill is about afford-ability for small businesses and California families.
Swipe fees disproportionately hurt California's small businesses and their customers.
Banks aren’t the ones footing the bill for the wealthy’s reward points — it’s everyday Californians and small businesses.
AB 1065 will result in about $3 billion in savings for California businesses, leading to lower costs for consumers.
American swipe fees are 7-8x greater than European Union swipe fees . Meanwhile swipe fees have increased by 46% since 2020 in the United States.
Estimated size of Visa/Mastercard Duopoly
Avg. cost to consumers each year
Join the Movement Today
FAQs
Merchants pay a swipe fee every time a customer uses their credit or debit card, and the costs are skyrocketing. Small businesses are especially at risk, as simply keeping the doors open has become difficult because of ever-increasing swipe fees.
Whether you know it or not, swipe fees follow us everywhere. With every credit or debit card purchase, retailers and merchants are forced to pay fees to big credit card companies. And even though it may seem like just a few cents, it all adds up fast — particularly for small businesses. Add it all up, and retailers and consumers are paying more while credit card companies rake in bigger and bigger profits.
Support AB 1065 by Asm. Liz Ortega and stand with Main Street versus Wall Street.