Oklahoma bill aims to cut credit card fees for restaurants, nonprofits

A bill (SB1095) in the Oklahoma Legislature would eliminate certain credit card fees on business transactions, primarily benefiting restaurants and nonprofits.

Supporters push for relief from fees

Supporters say the measure would help the restaurant industry by reducing fees that owners and employees pay on each credit card transaction. Andolini’s owner Mike Bausch believes credit card companies have taken too large a share of those transactions.

"Credit card transactions have been extremely predatory to small business in the history of their existence, and it's only gotten worse," Bausch said.

The bill would prevent card companies from collecting fees on sales tax and tips left by customers. Bausch hopes it becomes law, saying it would put more money in the hands of restaurant owners and workers.

"The average restaurant is paying what we would pay a full manager's salary in credit card fees," he said.

The Oklahoma Restaurant Association is backing the bill, with its president arguing it could help struggling businesses.

"Every time someone uses a credit card to make a small purchase, Wall Street banks and these behemoth credit card companies skim an extra two to four percent of that transaction," said James Leewright, president of the association.

Opponents warn of operational issues

The Oklahoma Bankers Association opposes the bill, calling it bad policy that could disrupt the credit card system.

"Exempting part of each transaction from the interchange fee, such as taxes and tips, would require card issuers to process those transactions for free while remaining liable for fraudulent use of the cards on those amounts," the association’s president said.

The bill would also prevent card companies from charging fees on nonprofit donations, ensuring that organizations receive the full amount donated. However, the Oklahoma Bankers Association warns that this could impact donations if card issuers refuse to process them due to fraud liability concerns.

Credit card companies would still collect fees on transactions, but if the bill passes, the changes would take effect Nov. 1.