ICYMI: Louisiana & Misguided Swipe Fees

“Proponents of interchange bills claim they are looking out for the small guy. But in reality, Louisiana’s entrepreneurs aren’t asking for a government-mandated accounting headache.”

In case you missed it, Roger Villere, former chair of the Louisiana GOP, authored an opinion piece published in The Daily Star, warning of the dangers of misguided interchange fee prohibition legislation creeping into Louisiana and many other statehouses across the nation.

In his piece, Villere explains the premise of interchange legislation, saying it would:

“force credit card processors to separate out sales tax and tips from every single transaction occurring in the State of Louisiana, a seemingly small change that would have massive downstream consequences for businesses, consumers and the state’s fintech network.”

Villere goes on to highlight how unrealistic implementing laws like this would be, remarking:

“Currently, there is no existing technological framework that allows for this separation for real-time transactions and creating one would require a massive overhaul of card processing systems across the state. That’s time, money and energy that Louisiana small businesses simply cannot afford.”

These types of bills could prove costly for small business who don’t have the time or money to cope with the new changes, he explains:

“For a large corporation and big box retailers, that’s just another line item that can be absorbed. But for the vast majority of Louisiana businesses that are small and locally owned, this change would be disruptive and costly to implement. And those added costs will more than likely be passed on to everyday Louisianans in the form of higher prices.”

Villere concludes by emphasizing that lawmakers must let Louisiana operate with as little government overreach as possible:

“Louisiana’s state lawmakers must reject any and all misguided proposals. Instead, legislators should double down on what has made our economy strong: free market principles, consistent regulation and a commitment to doing business the Louisiana way.”

Louisiana lawmakers stood strong this session, and their efforts to protect our free markets are commendable.

To read the Roger Villere’s full op-ed in The Daily Star, click HERE.