Protecting Consumers, Servicemembers, and Financial Stability
The Defense Credit Union Council (DCUC) has expressed its strong opposition to Puerto Rico Senate Bill 675, which seeks to exclude sales taxes and gratuities from interchange fee calculations.
“SB 675 would harm Puerto Rico’s financial ecosystem, especially servicemembers, veterans, and their families who rely on safe, convenient, and affordable payments through their local financial institutions including credit unions,” says Jason Stverak, DCUC Chief Advocacy Officer.
DCUC relayed key concerns presented with SB 675, including undermined payment security; a costly and complex Puerto Rico-specific technology mandate; disproportionate impact on smaller financial institutions (through limited resources and higher costs); shifted compliance expenses to consumers (higher fees, reduced rewards programs, fewer resources for security); lacking potential for true public benefit (past interchange regulations have shown savings are rarely passed on to customers); and the fact that no U.S. state or global jurisdiction has enacted this type of carve-out. DCUC’s expressed that enacting this bill would isolate Puerto Rico’s financial system and likely discourage investment.
Instead of rewriting payment rules, DCUC suggested that Puerto Rico adopt proven measures—such as ensuring full tip protection for employees or providing sales tax collection allowances for merchants—without harming consumers or financial institutions.
DCUC urges the Puerto Rico Senate to reject SB 675.
“Preserving the current interchange framework will safeguard servicemembers, veterans, and all Puerto Ricans by keeping payments secure, affordable, and reliable,” Steverak concluded.