The General Assembly Raised Bill No. 1460 aims to regulate interchange fees on electronic payment transactions by prohibiting payment card networks from including sales and use taxes in the calculation of these fees. Effective October 1, 2026, the bill defines key terms such as "credit card," "debit card," "electronic payment transaction," "interchange fee," "payment card," "payment card network," and "settlement." It mandates that each payment card network must either deduct the amount of tax from the interchange fee calculation at the time of settlement or rebate a proportionate amount of the interchange fee based on the tax amount. Retailers are allowed to submit sales data to the payment card network if they cannot capture tax information at the time of sale.

Additionally, the bill empowers the Attorney General to take legal action against payment card networks that violate these provisions, seeking civil penalties and refunds for retailers. The intent of the bill is to ensure that retailers are not unfairly charged interchange fees on the tax portion of electronic payment transactions, thereby promoting fairer financial practices in the payment processing industry.