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3. I think with most legislation there are always clear it becomes a large amount. The tip side of it is dicey, as
winners and clear losers should a specific law pass. The some restaurants charge 3 percent back to the server.
best way to ensure that well intentioned legislation is
not only beneficial to the masses but is not detrimental 2. Yes it is. It will take hours and hours of man hours
to others is to have legislators meet with leaders in the to write code and get all terminals and POS to handle
payment space to discuss the negative impact specific leaving out the fees for sales tax and tips.
legislation could unintentionally create.
3. What they all need to do is hire former legislators
One thought would be to provide a tax break for com- to help them navigate the waters for issues like this.
panies potentially most adversely affected in our in- Here is the bottom line. The states don’t care how they
dustry, such as point of sale providers and payment get their money as long as they get 100 percent of their
platforms. This could subsidize the enormous costs to money and on time.
implement, monitor and update their systems to reflect
current and potential changes in tax rates. I am surprised that there has not yet been a lawsuit
from a merchant group where they should not have to
Steve Norell pay a dime of the sales tax as it relates to credit card
US Merchant Services fees. If anything, processors need to make an arrange-
ment where they collect the sales tax and pay it for the
1. For starters it will drive the brands and processors merchant.
crazy as they now have to have two separate ways to
process cards. One with the current method and one I am aware there are companies that do this, but it is not a
with the exemption of sales tax and tips. direct relationship with the states. If I had a dollar for ev-
ery restaurant that was on a payback arrangement for un-
The sales tax I agree with 100 percent, since the mer- paid sales tax, I would be richer than Warren Buffett.
chant has to give 100 percent of the amount collected to
the state but because of IC, they do not get 100 percent
of it. Granted it is a very small amount, but over time

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