Last week AFSA’s State Government Affairs team submitted testimony opposing Maryland HB 29 and Washington SB 5070, both of which seek to limit interchange fees on the gratuity and sales tax portions of electronic transactions. These bills, modeled after Illinois’ controversial Interchange Fee Prohibition Act (IFPA), would shift financial burdens from retailers to financial institutions, creating a host of legal and operational challenges.
AFSA’s testimonies highlight that similar legislation has failed in 29 states over the past 17 years, and the IFPA itself is currently the subject of a legal challenge. A federal court recently granted a partial preliminary injunction against the Illinois law, citing likely violations of the National Bank Act and concerns raised by the Office of the Comptroller of the Currency (OCC). The OCC has warned that such laws could lead to increased fraud risks, constrained consumer services, and a fractured payment system.
In both Maryland and Washington, the proposed legislation would leave financial institutions with two unworkable options: either absorbing the cost of collecting retailers’ sales tax and processing gratuities or refusing to process those portions of electronic transactions, forcing consumers to use cash or checks. Neither outcome benefits consumers, businesses, or financial institutions. Given the significant legal and economic concerns, AFSA urges policymakers in Maryland and Washington to reject HB 29 and SB 5070.
For more information and to read AFSA’s full testimonies, visit the direct advocacy section of AFSA’s website.
AFSA Opposes State Interchange Fee Bills
Jan 30, 2025
Last week AFSA’s State Government Affairs team submitted testimony opposing Maryland HB 29 and Washington SB 5070, both of which seek to limit interchange fees on the gratuity and sales tax portions of electronic transactions. These … Read the rest
AFSA Lays Out Privacy Principles
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AFSA, along with many other trade associations, sent a letter this week to Senate Commerce Committee Chairman Ted Cruz (R-TX), Senate Commerce Committee Ranking Member Maria Cantwell (D-WA), House Energy and Commerce Chairman Brett Guthrie… Read the rest
CFPB’s Second Report on 2023 Auto Finance Data Pilot
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Last week, the Consumer Financial Protection Bureau (CFPB) issued the second in a series of reports based on its 2023 Auto Finance Data Pilot. While the first report discussed negative equity in vehicle finance transactions, the new paper… Read the rest
The Future of the Direct-to-Consumer Model w/ Brian Chance, Katie Johar & Eva Kellershof
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The AFSA Extra Credit Podcast is back for 2025 with fresh takes, knowledgeable experts and timely conversations on the consumer credit industry.
First up? Brian Chance and Katie Johar of EY and Eva Kellershof of NETSOL take a deep dive on the… Read the rest
California CCPA Regulations
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AFSA’s State Government Affairs team submitted a comment letter to the California Privacy Protection Agency regarding the proposed regulations for updates to the California Consumer Privacy Act (CCPA).
AFSA expressed strong … Read the rest
FTC Welcomes New Appointees
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AFSA would like to congratulate the new FTC Chair Andrew Ferguson. As of January 20th, FTC Commissioner Andrew Ferguson is Chair of the Federal Trade Commission, taking over for former Chair Lina Khan. As Chair Ferguson was already a confirmed… Read the rest
Time for Accountability is Now
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AFSA, in conjunction with our members, has worked to compile a list of policy requests to bring transparency and accountability to the Consumer Financial Protection Bureau (CFPB). These policies, focused on reforming the CFPB, will decrease… Read the rest
AFSA Education Foundation (AFSAEF) in Action
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The AFSA Education Foundation is celebrating a milestone event this year, its 35th anniversary and thanks to the generosity of AFSA member representatives giving their time and financial resources annually and to establish an endowment,… Read the rest
AFSA Supports Bipartisan Credit Repair Scam Legislation
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Reps. Sarah McBride (D-DE) and Young Kim (R-CA) reintroduced the bipartisan “Ending Credit Repair Scams Act” (HR 306) last week. This bipartisan legislation would protect financially distressed consumers from shady credit repair organizations… Read the rest
Congratulations to the 119th Congress Chairman
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Yesterday, AFSA sent a letter to both Senate Banking Chairman Tim Scott (R-SC) and House Financial Services Chairman French Hill (R-AR) congratulating them on their selection as chairmen for the 119th Congress, and reiterating our appreciation… Read the rest