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Calif. Assembly OKs bill closing ATM surcharge loophole

August 28, 2005

Sacramento Bee: A bill aimed at closing a loophole that prohibits ATM deployers, including San Franciso-based Swipe USA LLC, from charging a surcharge to foreign cardholders was approved Aug. 15 by the California General Assembly. The bill is now poised to be delivered to Gov. Arnold Schwarzenegger for his signature. Foreign travelers make 7 percent of transactions at Swipe each year, saddling the company with an annual revenue loss of $200,000 to $250,000, said Ron Christensen, Swipe's president.

"We all recognize how important California's role is as a major destination for tourists across the globe. By passing SB 389, the Legislature will create parity among cardholders," State Sen. Bill Morrow, who sponsored the bill, said after it cleared the Assembly banking committee last month.

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