“Even when we learned of this (bill), we were still very surprised.” “The state has never tried to prevent or deter online commerce,” said Cahn. The Alliance called the taxes “ludicrous” and said the taxes would not stop fraud or online sales because that would defeat the “purpose of the payment system.” “A credit card transaction is between a merchant and a consumer.

“It’s a tax on credit card transactions,” said Alliance General Counsel David Cahn. Merchant Marine Act of 1920 that requires states to impose a duty on money, the Alliance argued, not a tax. The states are trying to pass a law that applies to all merchants, regardless of how many states they are in.” “Card acceptance is a privilege, not a right. “The states’ law is unconstitutional,” Alliance Executive Director Rhett Wilkinson said. The three state Alliance for Retail Commerce filed a lawsuit against the states last week over laws, as well as a similar federal law, requiring merchants to collect a 4% tax on all credit and debit card purchases.

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