Swipe Fee Reform
For most Main Street retailers, credit and debit card swipe fees are the second highest cost they face each year, following only labor costs. Consequently, swipe fees increase the cost of goods for all consumers by roughly three percent.
The Visa and MasterCard duopoly undermines basic competition in the electronic payments market. Thus, the costs associated with card acceptance have skyrocketed so that retailers and consumers now pay an estimated $50 billion each year in these anticompetitive fees.
Well-established debit swipe fee reforms, passed in 2010, have established a degree of fairness and competition in the debit market, where none previously existed. Now, Visa, MasterCard and the biggest banks want to take it away.
RILA and its member companies and partners will execute an aggressive campaign to reinforce the importance of competition in the payments market and defend these important reforms.
As today's consumers move towards online or in-app shopping, Main Street retailers are at the losing end of the sales tax battle. The federal government has shown preferential treatment to online-only retailers. For over two decades, a loophole in our nation's sales tax laws has allowed online-only retailers to avoid collecting sales taxes, giving them a massive, unfair advantage over local businesses. Because Americans are increasingly relying on technology to shop, it is imperative that Congress update our sales tax laws to reflect commerce in the 21st century and allow all retailers to compete on a level playing field. RILA believes companies that sell exclusively through the Internet should play by the same sales tax rules as companies that sell through brick-and-mortar locations.
RILA will continue to support Congressional and legal efforts to close this tax loophole which does nothing but stifle growth and arbitrarily picks a series of winners and losers.