Massachusetts Commission Hears Sweeping Testimony Against Credit Card Swipe Fees

BOSTON — April 7, 2026 — Massachusetts small businesses demand swipe fee reform as legislative commission holds second public hearing. Dozens of restaurant owners, retailers, and craft brewers testified April 7 before the Special Legislative Commission to Study the Future of Payments and Sales Transactions by Credit Cards, co-chaired by Sen. Paul Feeney and House co-chair Murphy, urging the panel to prohibit credit card fees on taxes and tips and allow businesses to surcharge card-paying customers. Kathy Turner, chair of the Massachusetts Restaurant Association and owner of Turner Seafoods and Rising Eagle Public House, reported paying $450,000 in credit card processing fees in 2025 across four locations — more than her combined rent and utility costs — with over $120,000 covering taxes and tips that "wasn't even our money." Jessica Moore of the Massachusetts Restaurant Association said the legislation would save restaurants between $52.5 million and $87.5 million annually on tax-related swipe fees alone. Credit union and airline industry representatives pushed back, with Airlines for America citing $420 million in Massachusetts economic impact from loyalty-card travel in 2024 and the Cooperative Credit Union Association warning that capping interchange revenue would weaken fraud protections for its 3 million Massachusetts members. Massachusetts and Connecticut are the only two states that currently prohibit businesses from passing credit card fees to consumers.