This bill proposes the prohibition of interchange fees on state and local taxes as part of electronic payment transactions. It introduces new legal language to Minnesota Statutes, specifically in chapter 53B, establishing definitions for key terms such as "acquirer bank," "interchange fee," "merchant," and "tax." The bill outlines that issuers, payment card networks, acquirer banks, or processors cannot charge merchants interchange fees on the tax or gratuity amounts if the merchant provides the relevant data during the authorization or settlement process. If the merchant fails to transmit this data, they can submit tax documentation within 180 days to receive a credit for the interchange fees charged.

Additionally, the bill ensures that payment card networks are not held liable for the accuracy of tax or gratuity data reported by merchants. It also prohibits any alterations to the calculation of interchange fees that would increase the rates applied to transactions not related to taxes or fees charged to the retailer. Overall, the legislation aims to protect merchants from additional costs associated with electronic payment transactions involving taxes and gratuities.