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 the interchange fees related to these amounts at the time of settlement. Additionally, it specifies that if a merchant fails to capture and transmit the tax and gratuity amounts at the time of sale, they can submit documentation within 180 days to receive a credit for the interchange fees charged.

Furthermore, the bill defines key terms related to electronic payment transactions, such as "acquirer bank," "interchange fee," and "payment card network." It also establishes penalties for violations of these provisions, imposing a civil penalty of $1,000 per transaction for entities that do not comply with the regulations. The act is set to take effect on January 1, 2026.