The bill H.317, introduced by a group of Vermont Representatives, aims to prohibit the charging of credit card fees on the portions of transactions that are designated as tax or gratuity. To implement this, the bill adds a new subchapter (Subchapter 4A) to 9 V.S.A. chapter 63, which outlines definitions related to electronic payment transactions, including terms such as "acquirer bank," "merchant," and "interchange fee." The bill specifies that no issuer, payment card network, acquirer bank, or processor can charge interchange fees on the tax or gratuity amounts of a transaction, provided that merchants properly transmit these amounts during the transaction authorization or settlement process.

Additionally, the bill establishes penalties for violations, including a civil penalty of $1,000 per transaction for any entity that fails to comply. Merchants whose rights are violated can pursue civil action for damages, and the Attorney General is granted authority to investigate and enforce compliance. The act is set to take effect on July 1, 2025.