This bill amends Alaska law to prohibit issuers, payment card networks, acquirer banks, and processors from charging merchants interchange fees on the tax or gratuity amounts of electronic payment transactions, provided that the merchant submits the necessary tax or gratuity 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 fee charged on the tax or gratuity amount. The bill also establishes that entities involved in processing electronic payment transactions may only use transaction data for facilitating the transaction or as required by law.

Additionally, the bill introduces a civil penalty of $1,000 for each violation of these provisions and mandates that issuers refund the interchange fees charged on tax or gratuity amounts in violation of the new regulations. It also clarifies definitions related to electronic payment transactions, including terms such as "acquirer bank," "interchange fee," and "payment card network." Furthermore, the bill adds a new violation under the Alaska Unfair Trade Practices and Consumer Protection Act for breaching the specified provisions regarding interchange fees on tax and gratuity.

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