Washington Law Resolves Fiserv Tax Dispute on Processor Fees (Correct)

A new Washington state law limiting application of the business and occupations tax to credit card processing fees is poised to settle a court dispute between state revenue collectors and payments processing giant Fiserv Inc.

Gov. Bob Ferguson (D) on Tuesday signed into law a bill (H.B. 2020) that aligns with Fiserv’s position that interchange and network fees are “phantom income” that the company doesn’t collect or keep and thus should not add to gross receipts subject to Washington’s business and occupations tax. Fiserv had been embroiled in a legal dispute with the state’s Department of Revenue ...