facebook pixal

Restaurants turn to the states for relief on credit-card fees

Working Lunch: The argument against including sales taxes in the fee base is gaining traction.

To the dismay of sharp-eyed restaurateurs, any place that accepts credit cards is paying a processing fee not only on a customers’ food and beverage purchases, but also on the sales taxes that state and local governments levy. The establishment is not only required to collect and forward the government’s take but to pay a fee for the obligation.

But the industry appears to be making progress in its longstanding quest to factor sales taxes out of the base amount banks use to determine what a restaurant owes in credit-card processing fees. As this week’s Working Lunch podcast reports, the traction is coming from a shift in focus from federal reform to changing the system at the state level.

Co-hosts Joe Kefauver and Franklin Coley take an in-depth look at what success in banking-fee reform would mean for restaurants facing near-historic inflation.

As in every installment, the principals of the government-affairs consultancy Align Public Strategies also provide an overview of grassroots legislative and regulatory initiatives that could grow into major government issues for the business as a whole.

Download this and every episode from wherever you get your podcasts.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.


Exclusive Content


The better-burger revolution that wasn't

The Bottom Line: Remember when the fast-casual burger business was going to take loads of share from traditional fast-food chains? It never quite got there.


Here come the restaurant IPOs

The Bottom Line: Cava Group’s filing of its initial public offering documents could be the first of a few industry IPOs this year. But restaurant M&A remains weak.


A look inside the Papa Johns test kitchen

The kitchen is the centerpiece of the pizza chain’s new Atlanta headquarters, which makes sense. Innovation has been the centerpiece of the chain’s comeback.


More from our partners