The proposed bill introduces the "Interchange Fee Restriction Act" as a new chapter in Title 6 of the General Laws, aimed at regulating interchange fees associated with electronic payment transactions. It prohibits issuers, payment card networks, acquirer banks, and processors from receiving or charging merchants any interchange fees on the tax amounts of electronic payment transactions, provided that merchants inform the acquirer bank of the tax amount during the authorization or settlement process. If a merchant fails to transmit this tax data, they may submit tax documentation within 180 days to receive a credit for the interchange fees charged on the tax amount.

The bill also outlines penalties for violations of this prohibition, categorizing such actions as deceptive trade practices. Entities that violate the interchange fee restrictions may face civil penalties of up to $1,000 per electronic payment transaction and are required to refund the merchant the interchange fees charged on the tax amount. The act is set to take effect immediately upon passage.