HARRISBURG — A bill that aims to slightly lower credit card “swipe fees” is moving quickly through the Pennsylvania House. But it faces long odds in the state Senate and has drawn vehement opposition from banks and credit unions. Financial institutions say the current system works well and that changing it would create “chaos,” while merchants argue these fees are an undue burden on both them and their customers.

“There’s a lot of spin and swirl on that issue,” state Senate Majority Leader Joe Pittman (R., Armstrong) said, noting that changes to the fees are unlikely to be considered by his Republican-dominated chamber any time soon if the measure passes the Democratic-controlled state House.

Anyone who has paid for a transaction with a credit card has, knowingly or unknowingly, experienced swipe fees. When a customer pays a merchant using a credit card, the credit card company charges a “swipe fee.” The fee can range between 1.4% and 3.5% of the transaction’s cost, depending on the credit card company, including the cost of sales tax, plus an additional flat fee. Lower swipe fees are also charged on debit cards.

The bill in the state House would keep the fees from being applied to the state sales tax. The legislation was introduced, approved by a House committee, and preliminarily considered on the House floor last week.

Swipe fees are generally among sellers’ largest operating expenses, according to supporters of the bill. To cover them, businesses often raise prices and charge their own swipe fees to consumers. The National Retail Federation has estimated swipe fees cost the average family $1,000 annually.