The Missouri Chamber of Commerce and Industry is urging the Missouri Department of Revenue to reconsider a proposed rule change that would expand sales tax collection to include credit card processing fees charged to customers.
In a formal comment letter submitted to the department, Missouri Chamber President and CEO Kara Corches warned the amendment could have unintended consequences for Missouri businesses.
Under the proposed change, sellers would be required to apply sales tax to any fee charged for 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 Missouri Chamber also noted that the proposed language leaves key questions unresolved, including how to distinguish between credit card fees and other service charges, how fees should be displayed to customers and whether discounts for cash payments would be treated differently.
Beyond the financial implications, Corches cautioned that the rule could lead some businesses to reduce payment options, raise prices or absorb administrative costs, all of which could limit consumer convenience. She also pointed out that compliance would require business owners to make updates to point-of-sale systems and implement additional 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.
Read the letter here:https://mochamber.com/wp-content/uploads/2025/11/mo-chamber-12-csr-10-103.555-comment-letter-1.pdf
