Committee hears rival bills to bar swipe fees on taxes and tips as merchants, banks clash on feasibility

The House Committee on Small Business met April 3, 2025, in Room A135 to hear testimony on two bills aimed at limiting card interchange fees: House Bill 5582 (which would restrict interchange fees on sales and excise taxes) and House Bill 5554 (which would prohibit interchange fees on taxes and gratuities).

Supporters told the committee the bills would give immediate relief to small merchants who currently pay a percentage fee when customers use credit or debit cards on amounts the merchant does not retain. Bill Walsh, testifying for the Rhode Island Hospitality Association, described the issue as "a fairness issue," saying the fees erode already thin restaurant margins and noting that a growing share of transactions are by card. Written and oral testimony from hospitality and retail groups argued the savings could range from several thousand dollars a year for small operators to six figures for large venues.

The sponsor-backed presentation explained the two bills differ only in scope: HB 5582 focuses on state and local taxes remitted to…