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Restaurants, retailers push Maryland bill to bar swipe fees on tax and tips; banks and payment networks push back
Summary
Delegate Dana Morgan introduced HB 29 to bar card networks and issuers from charging interchange fees on the sales-tax and gratuity portions of card transactions; restaurants, retailers and convenience stores supported the idea, while banks and payments-industry groups warned of technical and legal obstacles.
Delegate Dana Morgan proposed HB 29 to stop interchange ("swipe") fees on the sales-tax and gratuity portions of card transactions. Morgan said Maryland businesses collectively paid about $156.9 million in swipe fees on sales tax in 2023 and argued the state should not let card networks collect fees on money merchants merely transmit to others.
Proponents — including the Restaurant Association of Maryland, the Maryland Retailers Alliance, convenience-store groups and local business owners — told the committee the cost of processing sales…
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