HARRISBURG, Penn.–In what the CrossState Credit Union Association is calling a “rushed vote,” a Pennsylvania House Finance Committee has approved a bill the association says “would create credit card chaos” in the state.
The legislation, HB 2493, would prohibit financial institutions, including credit unions, from collecting interchange on the sales tax portion of credit and debit card transactions.
Pennsylvania’s CUs are being urged by the CrossState association to contact their representatives and express their opposition.
According to the CSCUA, the bill’s language was only made public late Monday before the House Finance Committee voted this week along party lines, 14-11, to approve the measure.
‘A Separate Transaction’
“Merchants could be forced to collect the sales tax as a separate transaction, essentially requiring two transactions for every taxable sale, forcing consumers to pay the sales tax portion via cash or check,” the CrossState association said. “Merchants also would send payment companies additional information about a person’s shopping habits, creating enormous consumer privacy issues.”
The credit union trade group has joined with the Pennsylvania Association of Community Bankers and the Pennsylvania Bankers Association in issuing a joint statement in response to the vote.
‘Opposite of Consumer Protection’
“This stands in direct opposition to the basic principles of consumer protection,” Patrick Conway, president & CEO of CrossState Credit Union Association, said in a statement. “The legislation would disrupt credit card rewards and other benefits sought after by consumers and small businesses, and risk the exposure of confidential consumer information.”
The organizations have also created a website at GUARD YOUR CARD PA
The legislation moves to the Pennsylvania State House of Representatives for consideration.