OKLAHOMA CITY, Okla.–Credit card users in this state soon be paying more for purchases after the state Senate OK’d a measure that would increase a cap on what businesses could charge their customers for using credit cards.
Senate Bill 2132, by Sen. Spencer Kern (R-Duncan), would increase the surcharge fee businesses can charge their customers to 3% from 2%.
“Proponents said the change will help businesses better absorb the transaction fees that credit card companies are allowed to charge each time someone swipes their credit card,” Yahoo Finance reported.
Currently, businesses either need to absorb the transaction fee or increase their prices to cover those costs, James Leewright, president and CEO of the Oklahoma Restaurant Association, told Yahoo Finance. The group supports increasing the surcharge rate.
Recouping Costs
Leewright said restaurants make between 3% and 5% on a meal, but must pay large transaction fees to credit card companies, according to the report, which added that Lee said increasing the surcharge cap that businesses can charge consumers would allow restaurants to recoup some of those costs.
Credit card transaction fees are the third highest cost for restaurants behind labor and food, according to the report.
“We all know that people are moving into a cashless society,” Leewright told Yahoo Finance. “Most want to use credit cards for transactions and the credit card companies are charging enormous fees to be able to make that transaction happen. They don’t have any competition.”
The measure passed the Senate by a vote of 28-17. It now heads to the House for consideration.
