New Report: Removing Sales Tax from Interchange Calculations

Cornerstone Advisors has published new research related to the burden on credit unions and negative implications that would be imposed by the Credit Card Competition Act in Congress (“Durbin 2.0”) — which is the latest update to a Cornerstone report from a few months ago.

The new Harmful Impacts of Removing Sales Tax from Interchange Calculations report released this week includes the following sections:

• Executive summary.
• Proposed state legislation.
• Merchants and sales tax.
• Intricacies of sales tax.
• How card payments work.
• Methods for excluding interchange on sales tax.
• Challenges to all stakeholders.
• Small versus large merchants.
• Conclusions.
• (An addendum slide-show presentation is also available here).

This newly published research comes on top of a presentation this past summer, which included a slide show and True Impact of Interchange Regulation report — hosted and released by the California and Nevada Credit Union Leagues.

So far, California and Nevada credit union supporters have sent several thousand messages to Congress in opposition to the sweeping credit card interchange bill (the Credit Card Competition Act). Please keep up the great work through the Leagues’ Connect For The Cause campaign!