BillTrack50 logo
Free Signup Login
Bill

Bill > B26-0138

DC B26-0138

DC B26-0138
Fair Swipe Act of 2025

summary

Introduced
02/24/2025
In Committee
01/09/2026
Crossed Over
Passed
Dead

Introduced Session

26th Council

Bill Summary

a bill unfairly eats into the hard-earned profits of our local business retailers and should stay in their pockets so that they can continue to grow their businesses. This bill would prohibit the charging of interchange fees on the sales tax and gratuity portions of credit and debit card transactions. It also outlines the process by which a merchant can submit tax and gratuity documentation and receive credits for the amount of interchange fees charged per electronic payment transaction. For violations of the prohibitions created in this bill, it would impose a civil penalty of $1,000 per electronic payment transaction. Finally, the bill includes a non-severability clause, thereby ensuring key provisions do not solely burden District- chartered banks should the legislation be challenged in court. This legislation would allow the District to ensure that all merchants can keep their hard-earned profits in their pockets by recovering these fees either at the point of sale or through retroactive reimbursement by a financial institution. This is a step toward ensuring our local businesses continue to have a fair shot at post-pandemic recovery and can thrive in an environment that recognizes their challenges and creates opportunities for owners/operators and workers to succeed. Sincerely, Councilmember Charles Allen, Ward 6 Chairperson, Committee on Transportation & the Environment Councilmember Anita Bonds Councilmember Charles Allen Councilmember Wendell Felder Councilmember Christina Henderson Councilmember Janeese Lewis George Councilmember Brianne K. Nadeau Councilmember Brooke Pinto Councilmember Robert C. White, Jr. A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA To prohibit the charging of interchange fees on the sales tax and gratuity portions of credit and debit card transactions, to outline the process by which a merchant can submit tax and gratuity documentation and receive a credit for the amount of interchange fees charged per electronic payment transaction, to impose a civil penalty of $1,000 per electronic payment transaction for violations of this act, and to provide that this act is non- severable.

AI Summary

This bill, the Fair Swipe Act of 2025, aims to prohibit financial institutions from charging interchange fees (transaction processing fees) on the tax and gratuity portions of credit and debit card transactions. Specifically, if a merchant provides the tax and gratuity amount during the transaction's authorization or settlement process, payment card networks, acquirer banks, issuers, and processors cannot charge interchange fees on those portions of the transaction. If a merchant does not provide the tax and gratuity data during the transaction, they can submit documentation up to 180 days after the transaction, and the financial institution must then credit back the improper interchange fees within 30 days. The bill also prohibits financial institutions from manipulating fee structures to circumvent this requirement, with a potential civil penalty of $1,000 per transaction for violations. The legislation applies to electronic payment transactions in the District of Columbia and includes comprehensive definitions for terms like "electronic payment transaction," "merchant," and "payment card network." Notably, the bill contains a non-severability clause, meaning that if any part of the law is found invalid, the entire act will be deemed invalid. The act will take effect after mayoral approval and a congressional review period.

Committee Categories

Business and Industry

Sponsors (8)

Last Action

Referred to Committee on Committee of the Whole (on 01/09/2026)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...