NDGA has enlisted the help of ND State Senator Shawn Vedaa to introduce a Senate bill which would prohibit credit card companies from “Interchange (SWIPE) fees on sales tax collections.
North Dakota Retailers not only pay swipe fees on the base price of a transaction but also on the sales tax they are collecting for local and state governments. This means that while retailers are collecting and remitting sales taxes for the state, credit card companies are making additional profits on the sales tax portion of the transaction. With swipe fees of up to 4% (and higher for many small businesses) this creates an environment where credit card companies can make more money on a retail transaction than the retailer.
Retail Grocery profit margins are very thin now and cannot – nor – should not have to pad Visa and Mastercard’s bottom line!
NDGA will need the help of each of you to get this legislation passed. Big banks and the credit card companies will do whatever it takes to defeat this bill. Use this link to view a FAQ from FMI
NDGA is partnering with the ND Petroleum Marketers and Retailers Association. We expect to see other retail groups support our efforts.