Senate Judiciary delays bill aimed at curbing credit-card ‘‘interchange’’ fees

The Senate Judiciary Committee moved to postpone House Bill 1282 indefinitely on April 28, after sponsors and several committee members said the complex measure addressing credit-card “interchange” fees requires more time for stakeholder negotiation and legal review.

Sponsors told the committee the bill grew from concerns by small businesses, nonprofits and consumers that Visa and Mastercard — and large issuing banks — allow fee calculations that sometimes apply to taxes and tips. Committee members repeatedly raised questions about preemption, legal risk and the interplay of federal bank and payments law with state-level regulation, and asked sponsors to use the interim to convene stakeholders.

Why it matters: The measure would have tried to limit merchants’ exposure to certain fee practices that sponsors said reduce the take-home pay of tipped workers and siphon donations to charities. But the committee’s caution reflects uncertainty about whether state action could withstand federal preemption claims and litigation from payment networks and banks.

What happened: Senator Doherty moved to postpone the bill indefinitely. The motion passed on a roll call with six yes votes and one senator listed as excused (6–0, excused). Committee members said they intend to keep working with sponsors in the interim and encouraged convening banks, payment networks, small-business groups and victim-advocacy organizations to try to reach narrower, legally sustainable reforms.

Committee next steps: Sponsors and several members pledged to continue discussions through the summer, with the possibility of returning with narrower or multiple bills next session rather than the comprehensive approach presented this year.