The bill H.317, introduced by a group of Vermont representatives, aims to prohibit credit card fees on the portions of transactions that are designated as tax or gratuity. It establishes a new subchapter under 9 V.S.A. chapter 63, specifically addressing credit card fees related to these amounts. The bill defines key terms such as "merchant," "issuer," "payment card network," and "interchange fee," and outlines the responsibilities of merchants and financial entities regarding the transmission and documentation of tax and gratuity amounts during electronic payment transactions.

Under the proposed legislation, no issuer, payment card network, acquirer bank, or processor can charge interchange fees on the tax or gratuity portion of a transaction. Merchants are required to transmit these amounts during the transaction process, and if they fail to do so, they may face fees on the entire transaction. The bill also includes provisions for correcting inaccuracies in reported tax or gratuity amounts and establishes penalties for violations, including civil penalties of $1,000 per transaction. The act is set to take effect on July 1, 2025.