Op-ed From DEXSTA FCU CEO Jerry King: Lawmakers Right to Reject Interchange Bill

Delaware Daily State News recently published an op-ed by DEXSTA Federal Credit Union President and CEO Jerry King applauding lawmakers for rejecting House Bill 315 which would have excluded tips from interchange fees.

King noted that supporters presented the legislation as a way to protect tipped workers and reduce costs for small businesses, particularly restaurants. However, Delaware law already prohibits businesses from withholding tips to cover card-processing fees.

"Separating tips from card transactions would have been complicated, expensive and disruptive, with point-of-sale systems across Delaware needing to be reprogrammed and recertified at significant expense to small businesses already dealing with higher costs, inflation and more," King wrote.

The op-ed also explained that interchange helps support the fraud prevention, cybersecurity, dispute resolution and technology behind fast, secure card transactions. Had HB 315 passed, it could have shifted costs to local financial institutions while requiring businesses to make costly changes to their point-of-sale systems.

Read the full op-ed here.