The Informer: The Fair Swipe Act is Introduced in the D.C. Council

Written By Che Ruddell-Tabisola

Shawn Townsend, president and CEO of the Restaurant Association of Metropolitan Washington (Courtesy photo)

By James Wright Jr. / The Washington Informer / February 26, 2025

Story Excerpt:

The Fair Swipe Act is legislation that would prohibit banks and large credit card companies from including sales tax and gratuities when collecting swipe fees. Annually, swipe fees on sales tax and tips costs drive up the cost for a business by thousands of dollars. 

RAMW estimates a full-service restaurant could save around $14,500 per year just by excluding tax and tips from the swipe fee. Currently, whenever a customer uses a credit or debit card to pay for their purchase at a retailer or restaurant, the banks or credit card companies providing the service charge the business an interchange fee (commonly a “swipe fee”) to process the charge. 

Che Ruddell-Tabisola
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