Show-Me State Times

The Missouri Chamber of Commerce and Industry has asked the Missouri Department of Revenue to reconsider a proposed rule that would require sales tax to be collected on credit card processing fees charged to customers.

Kara Corches, President and CEO of the Missouri Chamber, submitted a formal comment letter outlining concerns about the amendment’s possible effects on local businesses. Under the proposal, sellers would need to apply sales tax to any fee associated with using a credit card.

“Businesses that implement convenience fees or card-surcharge options may face unintended additional tax liability, potentially increasing the cost of acceptance of credit cards,” Corches wrote. “The increased tax burden may be especially challenging for small businesses with tight margins.”

The chamber also raised questions about how businesses should distinguish between credit card fees and other service charges, how these fees should appear to customers, and whether cash payment discounts would be treated differently under the new rule.

Corches warned that beyond financial implications, the rule could cause some businesses to reduce payment options, raise prices, or absorb more administrative costs. This could limit consumer convenience. She added that compliance might force business owners to update point-of-sale systems and provide extra staff training.

“The Department’s financial estimate suggests minimal cost, but our members anticipate a significant financial and administrative burden as they seek to comply with the proposed rule,” Corches said.

The full comment letter is available at https://mochamber.com/wp-content/uploads/2025/11/mo-chamber-12-csr-10-103.555-comment-letter-1.pdf