The proposed bill amends Chapter 36, Title 63 of the Idaho Code by adding a new section, 63-3643, which establishes regulations regarding electronic payment transaction interchange fees. Specifically, it prohibits the imposition of interchange fees on any portion of a transaction amount that represents a state or local tax or gratuity, provided these amounts are separately identified by the merchant on the payment invoice. The bill outlines the responsibilities of payment card networks to either deduct or rebate interchange fees related to taxes and gratuities at the time of settlement, and it allows merchants to submit documentation for these amounts within 180 days if they are unable to capture them at the time of sale.

Additionally, the bill defines key terms related to electronic payment transactions and establishes penalties for violations of these provisions, including a civil penalty of $1,000 per transaction for entities that fail to comply. The legislation aims to protect merchants from excessive interchange fees on tax and gratuity amounts, ensuring that these fees are calculated fairly. The act is set to take effect on January 1, 2026.