Grand Canyon Times

In a recent op-ed for the Chandler Independent, Arizona State Representative Jeff Weninger has called on the state Legislature to pass HB 2629. The bill aims to protect Arizona small businesses from high swipe fees incurred when they collect taxes on behalf of state and local governments.

Weninger explains that merchants have no ability to negotiate these interchange fees, resulting in significant profits for out-of-state companies from Arizona’s sales taxes. "But here’s the kicker: the fees aren’t just charged on the cost of goods and services — they’re also tacked onto the sales tax businesses must collect and remit to the state. That means credit card companies are making billions of dollars from the taxes that consumers pay — money that was never theirs to begin with."

The proposed legislation, HB 2629, seeks to prevent credit card companies from charging swipe fees on sales taxes. "HB2629 will stop this practice and ensure Arizona businesses and consumers are treated fairly. By eliminating swipe fees on sales taxes, we can keep more money in our state’s economy, help small businesses grow, and prevent credit card companies from profiting off of money that should go back to our communities," Weninger states.

Weninger outlines the impact of these fees in his op-ed titled "It’s Time to End the Hidden Tax on Arizona Businesses." He notes that U.S. retailers pay an estimated $160 billion annually in swipe fees, which significantly affects both businesses and consumers.

"In 2023 alone, Arizona businesses paid over $217 million in swipe fees on sales taxes—a fee on a fee that never should have existed in the first place," he adds. The credit card industry is largely dominated by Visa and Mastercard, controlling 90% of payment processing transactions outside China.

Jeff Weninger urges lawmakers to support HB 2629 as a step towards fair treatment for Arizona businesses and consumers.