Legislator suggests waiving credit card costs for public services

Indianapolis, Indiana – Charging credit card fees for public services, according to a state senator on Thursday, is equivalent to double taxation.

According to information Sen. Fady Qaddoura, a Democrat from Indianapolis, received from state budget experts, the state charges convenience fees for services that are paid for with credit cards. The fees are passed straight to the customer and are the outcome of credit card issuers’ service charges. Although Qaddoura suggested the state should pay for those expenses out of its own budget rather than charging consumers, the state does not collect them as revenue.

“If taxpayers fund government services in the first place, why do they have to be double-charged to fund the services that they funded in the first place using their tax dollars?” Qaddoura said.

Qaddoura stated that he will introduce legislation to alter the practice during this session. According to him, the fees differ, but if his bill is signed into law, state agency clients might save, on average, $5 to $7 every transaction. The state government would be the sole entity covered by the bill.

According to Qaddoura, the costs are discussed during contract negotiations between the state and its suppliers. His measure would not go into effect until the current contracts expire, which is expected to happen around 2027, because the state recently concluded a new set of contracts.