The bill amends Alaska's laws regarding interchange fees on tax and gratuity associated with electronic payment transactions. It establishes that issuers, payment card networks, acquirer banks, or processors are prohibited from charging merchants interchange fees on the tax or gratuity amounts if the merchant provides the necessary documentation during the transaction process. If a merchant fails to submit this documentation at the time of the transaction, they have up to 180 days to do so, after which the issuer must credit the merchant for the interchange fees charged on the tax or gratuity. The bill also specifies that entities involved in processing electronic payments cannot increase interchange fees on non-tax or gratuity portions to compensate for lost fees from taxes or gratuities.

Additionally, the bill introduces civil penalties for violations of these provisions, imposing a $1,000 fine for each transaction that breaches the new regulations. It also clarifies the definitions of key terms such as "acquirer bank," "electronic payment transaction," and "interchange fee." Furthermore, it adds a new violation under the Alaska Unfair Trade Practices and Consumer Protection Act for breaching the newly established rules regarding the handling of electronic payment transaction data.

Statutes affected:
HB0171A, AM HB 171, introduced 04/02/2025: 45.50.471