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US-PA (US-PA) · Module W4 · Derived Confidence: Uncertain

US-PA: Scheme & Network Compliance

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Pennsylvania permits credit-card surcharging within federal/network caps and, as of early 2026, has an actively advancing legislative effort (HB 2090) to bar card networks from assessing interchange fees on the sales-tax portion of transactions — following a failed 2024 attempt — with enforcement vested in the state Attorney General against card networks only (not banks/credit unions).

Standing sub-brief · as of 5 July 2026225 words · last cycle 2026-07-05

Scheme & Network Compliance

Pennsylvania permits merchant credit-card surcharging, but only within layered limits: surcharges are subject to Federal 4% cap and card-network limits (e.g., Visa 3%), and surcharges must not exceed the actual processing cost — there is no dedicated state surcharging statute beyond this federal/network overlay. The more consequential development sits in pending legislation: House Bill 2090 would bar card networks from charging interchange fees on the Sales-tax portion of card transactions, with enforcement vested solely in the PA Attorney General against card networks (not banks/credit unions). The bill was reported out of the House Finance Committee on February 4, 2026 but was also laid on the table the same day per official PA General Assembly tracking; as of July 2026 it awaits further action with uncertain floor-vote prospects. This is a downgrade in assessed confidence from the prior baseline characterisation of the bill as "actively advancing," following a reviewer soft-flag challenge that identified the tabling as material context.

Outlook

HB 2090's fate is genuinely open. If it clears the tabled status and advances to a floor vote, Pennsylvania would become an early mover on a novel interchange carve-out tied specifically to sales-tax amounts — a template scheme operators elsewhere would likely watch closely. If it lapses, the episode still signals legislative appetite for interchange-fee intervention that may resurface in a future session.

no periodic updates on record for this sub-brief

Sources and findings (4 unique sources · R-3/R-4)
  1. [W4-E1] T2 Derived: Confirmed draft_no_legal_forcehttps://www.cspdailynews.com/technologyservices/pennsylvania-advances-targeted-swipe-fee-relief-retailers re-verified

    <cite index="68-3,68-4">The Pennsylvania House Finance Committee moved legislation forward that would prevent credit card companies from charging interchange fees on the sales tax portion of retail transactions; House Bill 2090 is a proposal backed by the Pennsylvania Food Merchants Association aiming to ease a cost burden for food retailers and convenience stores.</cite> <cite index="68-7,68-8">Enforcement under HB 2090 would apply only to payment card networks and would be handled by the Pennsylvania Attorney General's office; banks and credit unions would not be subject to enforcement actions under the bill.</cite>

  2. [W4-E2] T3 Derived: Probable draft_no_legal_forcehttps://merchantcostconsulting.com/lower-credit-card-processing-fees/credit-card-surcharge-laws-by-state/ re-verified

    <cite index="62-1">In 2024, the state of Pennsylvania almost passed a law to prohibit interchange fees on sales tax; while the bill failed, it shows that state lawmakers are paying close attention to the rising costs of swipe fees.</cite>

  3. [W4-E3] T3 Derived: Probable in_forcehttps://www.getflexpoint.com/credit-card-surcharging-us-states/pennsylvania re-verified

    <cite index="65-1,65-2,65-3">As of May 2025, Pennsylvania allows merchants to apply surcharges on credit card transactions, provided they follow federal regulations and card brand policies; surcharges must not exceed the actual cost of processing, and Pennsylvania merchants must keep surcharges within the federal cap of 4% and comply with Visa's 3% limit.</cite>

  4. [W4-E4] T4 Derived: Uncertain in_forcehttps://www.tnonline.com/20260323/consumers-beware-of-pennsylvanias-interchange-experiment/ re-verified

    <cite index="70-11,70-14,70-16">HB 2090 seeks to carve out sales tax from interchange calculations, something no other jurisdiction on the planet has successfully implemented; Pennsylvania already allows retailers to surcharge credit card transactions to cover processing costs, offering transparency and choice.</cite>