By Barbara Hoberock, Oklahoma Voice
OKLAHOMA CITY – Credit card users could soon be paying more after the state Senate approved a measure that would increase a cap on what businesses could charge their consumers.
Senate Bill 2132, by Sen. Spencer Kern, R-Duncan, would increase the surcharge fee, or the amount that 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.
Currently, businesses either need to absorb the transaction fee or increase their prices to cover those costs, said James Leewright, president and CEO of the Oklahoma Restaurant Association. The group supports increasing the surcharge rate.
Leewright said restaurants make between 3% and 5% on a meal, but must pay large transaction fees to credit card companies.
Increasing the surcharge cap that businesses can charge consumers would allow restaurants to recoup some of those costs, he said.
Credit card transaction fees are the third highest cost for restaurants behind labor and food.
“We all know that people are moving into a cashless society,” Leewright said. “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.”
Sen. Shane Jett, R-Shawnee, voted against the measure because he said it raises costs for his constituents who use credit cards.
“The last time I checked, I represent credit card holders,” Jett said. “They are constituents.”
He said he doesn’t want to tack an additional fee onto consumers.
Kern could not immediately be reached for comment.
The Oklahoma State Chamber, Tulsa Regional Chamber and Oklahoma City and Greater Oklahoma City Chamber have not taken positions on the bill.
The measure passed the Senate by a vote of 28-17.
It now heads to the House for consideration.
