BOSTON–Credit unions have testified against legislation in yet another state considering a ban on interchange fees on taxes and gratuities, as well as other changes to current card usage practices. 

Jessica Avery, director of advocacy with the Cooperative Credit Union Association, testified before the Joint Committee on Consumer Protection and Professional Licensure in the state legislature to voice strong opposition to S.205 on behalf of Massachusetts Credit Unions. 

“This legislation would amend the state’s interchange provisions to prohibit fees on taxes and gratuities and require merchants to accept credit cards across all networks—even those they don’t belong to,” noted the CCUA.

Additional Testimony

Following the testimony, the association reported representatives from the Electronic Payments Coalition and the Electronic Transactions Association also spoke in opposition, “reinforcing the significant concerns this bill presents. Among them: increased exposure to credit card fraud through unvetted networks and the loss of vital revenue streams used to protect consumers in the event of fraud,” according to the CCUA.