Massachusetts restaurant group urges ability to surcharge credit cards, streamlining municipal entertainment licenses

Jessica Moore, director of government affairs for the Massachusetts Restaurant Association, told the committee the industry continues to recover from pandemic disruptions but faces persistent cost pressures, including credit‑card fees, energy and insurance.

Moore said credit‑card processing costs are a major overhead item and described the industry's position: "Restaurant owners pay between 2% and 5% on every credit card transaction... As the disclosure of a surcharge would protect consumers, we would like Massachusetts to join the 48 other states that allow businesses to add a surcharge for using a credit card." She also said the association supports allowing cash incentives and reforms to prevent charging swipe fees on taxes and tips.

Moore thanked lawmakers for retaining regulatory changes created during the pandemic, including indefinite outdoor dining and permission to sell mixed drinks with takeout and delivery. She asked the committee to consider creating a commission to streamline municipal licenses after recounting an example of a restaurant forced to manage multiple short‑term music permits.

Why it matters: Committee members questioned how surcharging would work, whether it would raise consumer costs and how to protect consumers from double charges. Moore said clear disclosure rules and limits to surcharges would be needed and argued that allowing surcharges would align Massachusetts with most states and relieve a significant cost pressure for small restaurants.

Ending: Moore offered the association's assistance to members seeking help with insurance, energy procurement and licensing and encouraged lawmakers to consider both consumer protections and relief for small operators when debating surcharging legislation.