This bill amends Chapter 36, Title 63 of the Idaho Code by adding a new section, 63-3643, which establishes provisions 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 identified separately by the merchant. 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. It also specifies that if a merchant fails to capture and transmit these amounts at the time of sale, they can submit documentation within 180 days to receive a credit for the interchange fees charged.

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 do not comply. The effective date for this legislation is set for January 1, 2026.