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 within 30 days. The bill also establishes that entities involved in processing electronic payment transactions 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 related to electronic payment transactions, such as "acquirer bank," "interchange fee," and "processor." Furthermore, it amends the Alaska Unfair Trade Practices and Consumer Protection Act to include violations of the new section regarding interchange fees on tax and gratuity as an unfair trade practice.

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