Protect Interchange in Florida

Protect Florida’s consumers – Don’t allow Big Box Retailers to alter interchange

Changes to interchange calculations based on sales tax would lead to increased costs, not only to financial institutions like credit unions and community banks, but to Florida’s small businesses. We have the research. It’s simple. Interchange works. Do not let Big Box Retailers tell you otherwise.

How would it even work?

The technology required to calculate interchange costs on individual taxable items would be much more complicated than the current interchange and does not currently exist.

There is no doubt that large retailers could afford these specialized systems at a minimal cost, but it would burden our mom-and-pop shops on Main Street with additional costs. Costs that could lead stores to stop accepting card payments or worse, close their doors permanently.


Invasion of privacy?

Calculating interchange rates and merchant discount fees based on individual items is an invasion of Floridians’ privacy and the millions of visitors who travel to the Sunshine State every year. Calculating interchange fees based on the purchases for an individual item will make it possible for others to see where people are spending their money. No one wants ‘big brother’ peeking at their purchases whether it’s a new pair of shoes, amusement park passes or a donation to your favorite political cause. Floridians deserve better.


What is interchange?

Consumers across the country rely on credit and debit cards to make life happen, from paying for groceries to covering emergency car repairs or medical expenses. Accepted nearly everywhere, credit and debit cards offer robust security, fraud protection and access to credit that may not be otherwise available. Interchange fees, which are only a fraction of a cent per dollar transacted, make this possible. Interchange fees cover the cost of fraud detection, credit monitoring, and fraudulent purchase protection benefiting both consumers and merchants.

Finally, financial institutions depend on interchange income to both protect consumers from fraud and cover any losses as a result of merchant data breaches. Credit unions often utilize card programs to extend much needed credit to low-income members who may not qualify for other financial tools. Needlessly upending the interchange system will make it harder for Floridians to access the funds they may need to keep food on their table or gas in their tank.


Remember the last session?