The Fair Swipe Act of 2025 aims to protect local businesses in the District of Columbia by prohibiting the charging of interchange fees on the sales tax and gratuity portions of credit and debit card transactions. This legislation recognizes that these fees, which typically range from 2-4% per transaction, unfairly reduce the profits of merchants, as they are charged on amounts that do not contribute to the business's revenue. The bill outlines a process for merchants to submit documentation related to tax and gratuity amounts, allowing them to receive credits for any interchange fees charged. Additionally, it imposes a civil penalty of $1,000 for each violation of this prohibition.

The bill also includes a non-severability clause, ensuring that if any part of the legislation is deemed unconstitutional or invalid, the entire act will be considered invalid. This provision is intended to protect the integrity of the legislation and prevent any potential loopholes that could undermine its effectiveness. Overall, the Fair Swipe Act of 2025 is designed to support the recovery and growth of local businesses by allowing them to retain more of their earnings and navigate the financial challenges posed by interchange fees.