The Consumer Inflation Reduction and Tax Fairness Act aims to regulate interchange fees associated with electronic payment transactions, specifically addressing the treatment of tax and gratuity amounts. Under the provisions of the bill, issuers, payment card networks, acquirer banks, and processors are prohibited from charging merchants interchange fees on the tax or gratuity amounts if the merchant provides this data during the authorization or settlement process. If a merchant fails to transmit this information, they can submit tax documentation within 180 days to receive a credit for the interchange fees charged on those amounts. The bill also establishes civil penalties for entities that willfully manipulate interchange fees to circumvent these provisions.

Additionally, the act outlines the definitions of key terms such as "merchant," "issuer," "interchange fee," and "electronic payment transaction," which are essential for understanding the scope of the legislation. It includes provisions for civil penalties against violators, allowing aggrieved merchants or the attorney general to seek damages and refunds for unlawful fees. The act emphasizes that if any part of it is deemed invalid, the remaining provisions will still be enforceable, ensuring the overall intent of the legislation remains intact. The act will take effect upon publication in the statute book.