Sales Tax Swipe Fee Fairness Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill, the Sales Tax Swipe Fee Fairness Act, aims to prevent credit card payment processors from charging fees on the sales tax portion of retail transactions in South Carolina. It seeks to ensure that merchants are not unfairly burdened by these fees, which are often referred to as ‘swipe fees.’ The bill would require point-of-sale systems to automatically exclude sales tax from fee calculations.
Key provisions
- Credit card payment processors cannot charge fees on sales tax.
- Point-of-sale systems must exclude sales tax from fee calculations.
- The Department of Consumer Affairs can create regulations to implement the law.
- The Department of Revenue will be consulted.
- Defines ‘credit card payment processor’ as a company facilitating electronic transactions.
- Defines ‘swipe fees’ as transaction fees for credit/debit card use.
- The act takes effect upon Governor approval.
Who is affected
- Retail businesses
- Credit card payment processors
- Consumers (indirectly, through potential price reductions)
- Merchants
- The financial services industry
Notable changes
- This bill specifically addresses swipe fees on sales tax, a previously unregulated area.
- It establishes a requirement for point-of-sale systems to automatically exclude sales tax from fee calculations.
Bill text
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