Reg. businesses/card fees

AN ACT Relating to modernizing payment systems by expanding 1
consumer-friendly transaction options for registered tow truck 2
operators and regulated businesses; adding a new section to chapter 3
19.200 RCW; and creating a new section. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds that registered 6
tow truck operators play a critical role in maintaining public safety 7
and ensuring the smooth operation of transportation systems across 8
Washington state. A significant portion of their work involves 9
responding to calls from law enforcement, fire departments, and other 10
public agencies, often under urgent and challenging conditions. 11
Despite the essential nature of their services, registered tow truck 12
operators in Washington state frequently do not receive compensation 13
for many of the vehicles they are required to tow. This creates a 14
substantial financial burden, especially for small businesses 15
operating in this sector.16
(2) Furthermore, while unregulated businesses are permitted to 17
recover credit card processing fees by transparently passing those 18
costs on to consumers, regulated businesses, including tow truck 19
operators, are not afforded this same ability. This results in an 20
economic disadvantage, particularly for operators already facing 21
S-0638.1
SENATE BILL 5363
State of Washington 69th Legislature 2025 Regular Session
By Senators Lovick, J. Wilson, Chapman, and Wagoner
Read first time 01/20/25. Referred to Committee on Business,
Financial Services & Trade.
p. 1 SB 5363
significant expenses related to unreimbursed tows and the costs of 1
maintaining compliance with state regulations. Notably, the state of 2
Washington itself imposes convenience fees on consumers for credit 3
and debit card transactions related to state services, including 4
licensing, property taxes, and court payments. In 2021, Washington 5
state enacted legislation requiring the department of licensing to 6
charge transaction fees for credit card payments, further 7
illustrating the necessity of such cost-recovery mechanisms. For 8
example, RCW 46.01.235 authorizes the department of licensing to 9
charge fees for electronic payment transactions. 10
(3) The legislature recognizes the urgent need to modernize 11
payment systems for regulated businesses, ensuring they can recover 12
credit card transaction fees in a transparent and consumer-friendly 13
manner. This modernization would align the practices of regulated 14
businesses with those already implemented by the state and 15
unregulated industries, fostering fairness and economic 16
sustainability. 17
(4) By addressing these inequities, this act aims to support 18
small businesses providing essential public safety services, promote 19
fair economic practices, and ensure consumers continue to have access 20
to transparent payment options. Establishing a consistent framework 21
for credit card transaction fees will help preserve the viability of 22
critical services while protecting consumer choice.23
NEW SECTION. Sec. 2. A new section is added to chapter 19.200 24
RCW to read as follows: 25
(1) Businesses whose fees or charges are regulated in Washington 26
state are allowed to charge a transaction fee for processing a credit 27
card payment provided that: 28
(a) A no-cost payment option is always available to the consumer; 29
and 30
(b) The no-cost payment option is disclosed to the consumer at 31
the same time and in the same manner as the consumer's credit card 32
information is taken. 33
(2) The transaction fee amount shall not exceed three percent of 34
the payment amount. 35
p. 2 SB 5363
(3) For purposes of this section, "credit card payment" means any 1
payment made by a payment card that incurs an interchange fee, 2
regardless of the type of payment card used. 3
--- END ---
p. 3 SB 5363