North Carolina Businesses Urge Passage of House Bill 650 to End Unfair Swipe Fees on Sales Tax

RALEIGH, NC – The North Carolina Restaurant and Lodging Association (NCRLA) and the North Carolina Retail Merchants Association (NCRMA) are calling on state lawmakers to pass House Bill 650, a commonsense measure that would end the practice of charging credit card “swipe fees” on sales taxes—money businesses are legally required to collect and remit to the government, not retain as revenue.

Under current practices, when a customer pays with a credit or debit card, businesses are charged a fee—typically between 2% and 4%—on the entire transaction amount, including state and local sales tax. In North Carolina businesses pay more than $283 million in swipe fees annually on sales taxes they never kept.

“Every dollar matters, especially in today’s economy,” said NCRLA President and CEO Lynn Minges.” Ending swipe fees on sales taxes is a bipartisan, pro-business, and pro-fairness solution. We urge the General Assembly to pass House Bill 650 and stand with North Carolina’s businesses.”

The impact is widespread, affecting industries from retail shops and restaurants to grocery stores, hotels, gas stations, and service providers. For high-volume and small-margin businesses, these fees can add up to thousands—or even tens of thousands—of dollars each year, often making the difference between survival and closure.

“Businesses are being penalized simply for collecting taxes on behalf of the government,” added NCRMA President General Counsel Andy Ellen. “This isn’t just unfair—it’s nonsensical. It’s time for North Carolina to fix it.”

Eliminating swipe fees on sales tax would:

• Provide immediate, meaningful financial relief to businesses without costing the state any revenue.
• Allow businesses to reinvest savings into employee wages, growth, and local communities.
• Help businesses keep prices lower for consumers by reducing unnecessary overhead.

North Carolina businesses are committed to collecting and remitting sales tax as required by law, but it’s simply unfair for them to also be charged swipe fees on those tax dollars. Other states are already moving to address this issue, and North Carolina has the opportunity to lead by example in supporting its business community.

House Bill 650 is a commonsense solution that will relieve an unnecessary burden on businesses of all sizes without costing the state a penny. We strongly urge lawmakers to support this measure and stand with the businesses that are the backbone of our local communities.