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 payment card networks either deduct the amount of sales tax from the interchange fee calculation at the time of settlement or provide a rebate proportional to the tax amount. Retailers are required to capture and transmit tax information during the transaction, but if they cannot, they may submit sales data to the payment card network for a credit to their settlement account.

Additionally, the bill empowers the Attorney General to take legal action against payment card networks that violate these provisions, allowing for civil penalties of up to one thousand dollars per violation and refunds to retailers for improperly charged interchange fees. The proposed changes are intended to ensure that retailers are not unfairly charged interchange fees on tax amounts, thereby promoting fairer practices in electronic payment transactions.