The proposed bill, if enacted, would amend current statutes by adding new provisions regarding interchange fees related to electronic payment transactions. Specifically, it would prohibit issuers, payment card networks, acquirer banks, or processors from charging interchange fees on the tax amount of a transaction, provided that the merchant informs the acquirer bank of the tax amount during the authorization process. Merchants would be required to transmit the tax to avoid these fees, and if they fail to do so, they must submit tax documentation within 180 days to receive a credit for the interchange fee.

Additionally, the bill introduces penalties for violations of these provisions, including a civil penalty of $1,000 for each transaction and a requirement to refund the interchange fee. It also clarifies the responsibilities of payment card networks regarding the accuracy of tax data reported by merchants and defines key terms related to electronic transactions, such as "acquirer bank," "interchange fee," and "tax documentation." Overall, the bill aims to enhance transparency and fairness in the calculation of interchange fees associated with electronic payments.

Statutes affected:
Introduced Version: 44-7017