Things that caught our eye this week

In this roundup, we've taken note of a new push to limit interchange fees on tips and taxes, a new direct processor promising flexibility and opportunities aplenty, the persistent cash flow struggles of UK SMEs, and the rising importance—and risks—of personalization and convenience in ecommerce.

Another effort to ban interchange on tips and tax

To the list of states where interchange assessments on tips and the tax portion of sales may soon be prohibited you can now add Washington. The state Senate Labor and Commerce Committee just held a hearing on SB 5070, which would do just that. If approved by both houses of the state legislature, the bill could become law in July 2026.

Similar legislation, the Interchange Fee Prohibition Act, was already signed into law in Illinois and was set to take effect on July 1, 2025. However, on Dec. 20, 2024, in Illinois Bankers Association v. Raoul, a case challenging the act, Judge Virginia Kendall of the Northern District of Illinois issued a preliminary injunction against enforcing the act.

The Pennsylvania legislature, too, is considering such legislation.

A new direct processor comes to town

Cygma, Electronic Payments' wholly owned payment processor, is a new frontend authorization network and backend clearing platform that brings more flexibility and opportunities to your agency or ISO, Electronic Payments stated, noting that Cygma supports all the major card schemes and processes credit, debit, prepaid and EBT transactions. In addition to the Tier I card schemes, regional debit networks are fully supported via Gateway bridge to the various regional debit networks.

Built-in perks mentioned by Electronic Payments include fast processing, payments and residuals; comprehensive support; access to lucrative verticals; better pricing and service; and access to the EPI community. Also, onboard onto Cygma, and you'll have a chance to win a $10,000 reward. Learn more about Cygma at electronicpayments.com/products/cygma/. For information about partnering with Electronic Payments see electronicpayments.com/partner-programs/iso-agent-programs/

Tackling cash flow woes: The SME struggle

Late payments are the leading cause of cash flow issues for 41 percent of UK small and medium-sized enterprises (SMEs), costing businesses an average of £22,000 (27,472.83) annually and contributing to 50,000 closures each year, according to EV and fuel expense payment company Allstar, which researched the issues plaguing the nation’s small businesses. This issue is compounded by seasonal strains like Blue Monday, often leaving businesses grappling with reduced productivity and tight budgets. Allstar found that over half of SMEs cite cash flow as a critical challenge, with 70 percent saying it hampers growth.

Managing cash flow and admin consumes up to six hours a week for over half of SME leaders. Many are calling for faster invoice payments (28 percent) and streamlined systems (27%) to alleviate these burdens. Solutions like Allstar Plus offer SMEs up to 44 days of interest-free credit and a single platform for expenses, simplifying operations and enabling owners to focus on growth. Paul Holland of Allstar emphasized the importance of efficiency and innovation, enabling SMEs to thrive and contribute to the broader economy during challenging times.

Personalization and convenience matter in 2025

Chargebacks911 founder and CEO Monica Eaton believes that this year personalized shopping will see a significant rise within ecommerce, with consumers using technologies like AI-driven recommendations, augmented reality and virtual try-ons to create immersive, more personalized experiences. However, she noted, as with any emerging technology, these shopping tools in their beginning stages can mislead customers based on their parameters or prompts.

"Whether it’s an out-of-date suggestion from AI, a low-quality mixed reality app, or a ‘digital fitting’ that doesn’t accurately depict the product, merchants put themselves at risk of chargebacks if their return process is lengthy or complicated for their customers," she said. “Merchants must remember that when it comes to unsatisfying purchases—especially those perpetrated by early-stage shopping tools—they are competing for convenience with a customer’s bank."

Eaton went on to say that according to Chargebacks911's 2024 Cardholder Dispute Index, half of respondents admitted disputing transactions with their bank without ever contacting the retailer, and three-quarters of cardholders believe refunds and chargebacks are the same thing. "Aside from chargebacks costing merchants 3.75 times the value of a disputed transaction, consumers circumventing a merchant’s refund process takes away a merchant’s ability to recoup or exchange a product, provide store credit, or even make an additional sale."

Eaton suggested that by making their return policies clear, concise and easy to access, "merchants can entice their customers to express their frustrations with them rather than their bank—ultimately saving merchants time, money and customer churn."

Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.

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