For immediate release
Albany, NY (February 26, 2025) – A nationwide coalition of New York Business Trade Associations, led by the National Federation of Independent Business (NFIB), New York Food Industry Alliance, and New York State Restaurant Association issued a letter today supporting A.4017 (McDonald) / credit card fees. The legislation would end this destructive practice from credit card companies and debit bank networks, providing considerable savings for customers, employees and traders, reaching $ 930 million per year. Last year, Illinois was the first state in the country to go through similar legislation to the law.
According to Capital One purchases research, cash is now used in only 12 percent of shop transactions, with Americans spending nearly $ 11 trillion in purchases using prepaid loans, debates and cards in 2023. In the first six months of 2024, Americans’ expenses at American Express, Discover, and a visa cards. data from Nilson Report. For 2023, this resulted in total sliding tariffs reaching $ 172 billion in the United States, with VISA and MasterCard withdrawal to $ 100 billion only from sliding tariffs.
Small businesses operate in cash margins, which have been shortened in recent years after the sliding tariffs of credit card networks have increased. In fact, credit card sliding fees have doubled since 2012 to small businesses owners. This problem has been aggravated by the high inflation in recent years, which acts as multipliers as sliding fees are a percentage of each sale.
ASSEMBLYMER CHARGE John T. McDonald III, RPH He said, “I sponsor this bill because I know how important it is to support our captured workers and small businesses that would benefit by excluding sales tax and thanks from credit card sliding fees and that any little helps as the costs and affordability remains a concern. A fee for the collection of taxes required.
Senator James Skouufis “Everyone knows that credit card companies are involved in predatory practices. A wild practice that hits our small businesses unnecessarily difficult is to upload slide fees to sales tax and bankruptcies associated with buying a customer. The businesses of our state.
“The NFIB strongly supports reigning on the sliding fees of credit cards out of control,” said State Director NFIB New York Ashley Ranslow. “These disproportionate credit card tariffs cost businesses millions each year and penalize small businesses in a punish way, damaging the beginnings, job creation and the survival of the main street stores. More than 11,000 members of the NFIB and all Small businesses across New York are being charged with large tariffs by credit card companies in state and local tax created by transactions for their products and services. On the way. “
“The New York Food Industry Alliance strongly supports this legislation and applause Senator Skouufis and Assemblyman McDonald to lead the critical effort to reign in these excessive, monopolistic tariffs,” he said FIA President Mike Durant. “This legislation, simply removing the state sales tax from the exchange rate and from any thanks given to employees, will help sellers, employees and customers across New York save more than $ 900 million a year.”
“Many restaurants across the New York state are barely hanging. With high work costs and almost unprecedented inflation, this industry is moving on an economic line that is finer than ever before, ”he said President of the State Restaurant Association in New York and CEO Melissa Fleischut. The everyday that a restaurant earns now is of great importance and exchange rates are raising valuable resources from our businesses. These fees are forcing our members to increase costs, while also forcing them to try to get less. Why should a restaurant pay higher fees because we have to pay sales tax? Why should a restaurant be forced to pay the highest fees because one of our employees has done a great job and won a greater advice? It simply makes no sense, and while more and more customers use credit cards as their main form of payment, this is another cost that is higher than ever. This legislation will turn money on these local economic quarries and allow our favorite local restaurants to keep their doors open. “
The NFIB -led coalition includes:
New York Food Industry Alliance
National Federation of Independent Business (NFIB)
New York Association of Comfort Store
New York Farm Bureau
New York State’s hospitality and tourism association
Liquor State New York Shop Association
New York State Restaurant Association
Association of Northeast Retail Sale (NRLA)
Ski New York
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For more than 80 years, the NFIB has protected on behalf of the owners of small and independent businesses of America, such as in Washington, DC, and in all 50 state capitals. The NFIB is nonprofit, non -artisan and led by members. Since our founding in 1943, the NFIB has been dedicated exclusively to small and independent businesses, and remains so today. For more information, visit NFIB.com.