• Home
    Home We Serve America's Restaurants Representing nearly 500,000 restaurant businesses, we advocate for restaurant and foodservice industry interests and provide tools and systems that help members of all sizes achieve success.
  • Foundation
    Foundation Building & Retaining Talent The NRAEF is focused on developing a stronger workforce and building the next generation of industry leaders through education, scholarships and community engagement.
  • Show
    Show May 18-21, 2019 As the international foodservice marketplace, the National Restaurant Association Show provides unparalleled opportunities for buyers and sellers to come together, conduct business and learn from each other.
  • ServSafe
    ServSafe Minimize Risk. Maximize Protection. For over 40 years, ServSafe® training programs have delivered the knowledge, leadership and protection that have earned the trust and confidence of business leaders everywhere.

National Restaurant Association - Congress holds debit card tax hearing

Skip to navigation Skip to content

News & Research

News RSS

Congress holds debit card tax hearing

Members of the House Financial Services Committee met today to discuss the repeal of debit card swipe-fee protections that currently keep transaction costs fair and reasonable for restaurateurs and other small business operators.

Today’s hearing offered an in-depth look at the updated version of the Financial CHOICE Act. Drafted by Rep. Jeb Hensarling, R-Texas, the bill would reverse the protections passed as part of the Durbin Amendment in 2010.

Repeal = tax on small businesses, consumers

In a letter to committee members, Cicely Simpson, our executive vice president of government affairs and policy, previously made clear the repeal would be a tax on small businesses and consumers.

“On behalf of restaurants and customers in your districts, we urge you to oppose the repeal of debit swipe fee protections included in the Financial CHOICE Act,” she said. “Repealing debit swipe fee reform would, once again, tilt the balance away from Main Street’s small businesses, their consumers and your constituents.”

She said a reversal of the protections would only benefit big banks, who’d reap $8.5 billion a year in profits from the increased fees.

The debit card swipe-fee protections provided relief to small businesses who’d been paying astronomical fees on each debit card purchase. Once enacted, the protections cut fees nearly in half, allowing operators to hire tens of thousands of new employees.

Members, constituents speak up

At today’s hearing, Rep. Dennis Ross, R-Florida, said numerous constituents, many of them small business operators, are concerned about the repeal. They told him debit reform must be maintained, adding that savings from reduced transaction fees resulted in business and employee growth.

“The savings realized from debit reform has allowed them to hire more employees, open more new stores and … even pass along some of the savings to consumers,” he told the committee.

Following his statement, Ross submitted letters from the Food Marketing Institute, the National Retail Federation, the Merchants Payments Coalition and a joint trade letter into the record that represent 170 national, state and local trade associations opposing a repeal of debit card swipe-fee protections.

As Congress considers the Financial Choice Act, we’re urging members of our industry to fight back. Visit StopTheDebitCardTax.com to speak out today!

Conserve RSS Healthcare RSS Conserve RSS

▲ Back to Top

We're glad you're here!®

® 2012-2017 National Restaurant Association. All rights reserved.

2055 L St. NW, Suite 700, Washington, DC 20036
(202) 331-5900 | (800) 424-5156