Advocacy Update: WBA Pushes Back on Swipe Fees Proposal and Forward with Legislative Priorities in 2025–26
By Lorenzo Cruz
The Wisconsin Legislature is back in session. One legislative issue which has resurfaced is credit card swipe fees. The draft proposal prohibits a financial institution from charging an interchange fee on the sales tax portion of a credit card transaction. The draft also includes the repeal of the Unfair Sales Act and could include data privacy language. A large retailers’ coalition is pushing the draft that WBA opposes. In 2021, the interchange bill died in committee.
What has sparked interest in moving legislation forward here in Wisconsin? Our Illinois neighbor passed a new interchange law last summer, which is being litigated in federal court. The Interchange Prohibition Fee Act prohibits charging or receiving the interchange fee on the portion of the transaction that covers state or local taxes and gratuities. Over a dozen differing interchange bills could be introduced nationwide in 2025.
Moreover, WBA’s Government Relations team continues to monitor and lobby legislators on the Association’s other priorities below for the 2025–26 legislative session.
• Environmental, Social, and Governance (ESG) – WBA intends to minimize the impact of legislation that would prevent or limit a bank’s ability to make their own risk-based business decisions over loans and investments.
• Trust Code – WBA continues to work with the State Bar on Domestic Asset Preservation Trust and other trust related changes.
• Privacy – WBA continues to protect GLBA exemption for financial institutions and their affiliates in data privacy legislation.
• Tax Parity – As more tax-exempt competitors leverage their competitive advantage over banks, WBA keeps pursuing legislative parity for the banking industry and its customers.
• Artificial Intelligence – As artificial intelligence emerges as an issue nationally; WBA will collaborate with legislators to minimize the impact of any AI legislation on the banking industry.
• Elder Fraud Prevention – While positive progress was made on a trusted list last session, obtaining the opportunity for a pause remains a priority for WBA during the 2025–26 session.
• Merchant Category Codes – WBA will continue to neutralize any harmful legislation.
Switching gears to political fundraising, the GR team successfully raised over $271,000 in PAC and conduit contributions in 2024 and reached 90% of WBA’s year-end goal of $300,000, which set a record high. The team also delivered increases across the board in members for Leadership Circle, Silver Triangle, Gold Triangle, and Bankers Involved with Grassroots and Government (BIGG). WBA honored the recipients at a dinner during WBA’s Bank Executives Conference last month in Milwaukee.
Without the membership’s political advocacy support, WBA would not have been able to pass laws on an income tax exemption for banks on commercial/ag loans, banking modernization, trust code update, or elder fraud protections in the 2023–24 legislative session. Let us continue to amplify WBA’s advocacy impact by building on past legislative victories and setting new records for 2025 in political giving and attendance levels at Capitol Day on May 6, the Kohler issue advocacy outing on June 16–17, and the Milford Hills sporting clays PAC event on October 23. Thanks to all the members for their continued commitment to the cause that allows the Association’s unified voice to be heard above the rest.
Cruz is WBA vice president – government relations.
