Banks, Retailers Battle on California Bill to Limit Card Fees

March 19, 2025, 9:00 AM UTC

California lawmakers are proposing legislation that would exempt taxes and tips from credit card transaction fees, the latest state showdown between retailers and financial institutions in a long-running lobbying battle.

Grocers and convenience stores back the bill (AB 1065), which is part of a nationwide push by retailers against fees that typically amount to between 2% and 4% on every debit and credit card transaction.

“These fees are out of control, and I find it ironic that we’re being taxed on a tax that businesses have to pay,” Assemblymember Liz Ortega (D), the bill’s author, said.

Illinois enacted ...

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