The proposed bill aims to exclude interchange fees imposed by payment card networks on certain taxes during electronic payment transactions. Specifically, it defines key terms such as "credit card," "debit card," "interchange fee," and "tax," which encompasses various state taxes including sales and use taxes, hotel and motel taxes, and others. The bill stipulates that the amount of tax calculated as a percentage of an electronic payment transaction and listed separately on the payment invoice shall not be included in the calculation of the interchange fee charged by the payment card network.

Furthermore, the bill mandates that payment card networks must either deduct the tax amount from the interchange fee calculation at the time of settlement or rebate a proportionate amount of the interchange fee based on the tax. If a seller cannot capture and transmit the tax amount at the time of sale, the payment card network is required to accept proof of the tax collected and credit the seller's settlement account accordingly. Violations of this bill would result in a civil penalty of $1,000 per violation, with collected funds directed to the state’s general fund. Additionally, individuals may pursue private actions to enforce the bill, allowing them to recover penalty amounts from the payment card network.