On November 13, 2025, the Puerto Rico Senate issued Negative Report 675, recommending against approval of Senate Bill 675—a proposal that would have prohibited interchange or “swipe” fees on the portions of credit- and debit-card transactions attributable to taxes, tips, or charitable donations.
The Committees on Federal Relations and Implementation of the People’s Mandate for Status Solution and on Economic Development, Small Business, Banking, Commerce, Insurance and Cooperativism concluded that although the measure sought to address merchant burdens, it presented significant operational, legal, and fiscal risks, and could expose the Island to federal pre-emption litigation.
With this decision, Puerto Rico joins other U.S. jurisdictions—including Illinois and Colorado—that have paused, withdrawn, or declined similar legislation due to regulatory, technology, and banking-law constraints.
The bill sought to modify Law 150-2008 (prohibiting surcharges for using credit/debit cards) and Law 42-2015 (payment-method requirements) to outlaw swipe fees when charged on IVU (sales tax), tips, or donations.
While the bill was framed as a consumer and small-business protection measure, the Committees found no evidence that Puerto Rico’s financial or merchant infrastructure could support such a change without substantial reengineering, multi-level system updates, and possible federal conflicts.
The Electronic Payments Coalition (EPC) adopted a qualified opposition. EPC acknowledged that the bill’s requirements were technically feasible but emphasized that implementation would take many years, citing the eight-year national transition to EMV chip-card standards as precedent.
EPC warned of high costs for banks, processors, and merchants, defended the current card-payment system, and noted that over 90% of consumers report satisfaction with electronic payments. EPC cautioned that the bill could undermine system reliability, increase operational burdens, and unintentionally raise consumer costs.
The Puerto Rico Banks Association, Defense Credit Union Council (DCUC), Card Coalition, Electronic Transactions Association (ETA), American Financial Services Association (AFSA), and Capital One Services expressed full opposition.
Their testimony highlighted:
Regulators—including OCIF, COSSEC, DACO, Hacienda, and the Office of the Commissioner of Insurance (OCS)—highlighted:
Merchant groups diverged:
Despite recognizing that swipe fees impose a real economic burden—estimated at $74 million annually—the Committees determined the legislation was not viable due to:
The Committees ultimately recommended a negative report, encouraging policymakers to explore alternative reforms, including financial-education efforts, merchant transparency measures, and inter-agency regulatory coordination.
Puerto Rico’s decision to reject SB 675 aligns with a broader national trend of cautious regulation of interchange fees. States that attempted similar restrictions have encountered legal uncertainty, federal challenges, and implementation delays.
For financial institutions, acquirers, and payment facilitators, the result provides regulatory continuity, avoiding disruptive system-level redesigns. For merchants, the outcome preserves the current interchange model but keeps open avenues for future reforms targeting transparency, cost allocation, and payment-method rules.
