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 the Vermont Statutes Annotated, specifically addressing credit card fees related to taxes and gratuities. It defines key terms such as "acquirer bank," "merchant," "interchange fee," and "gratuity," and establishes that no issuer, payment card network, acquirer bank, or processor can charge interchange fees on the tax or gratuity amounts of a transaction.

Additionally, the bill outlines the responsibilities of merchants in transmitting tax and gratuity amounts during the transaction process and provides a mechanism for correcting any inaccuracies in reported amounts. It imposes civil penalties for violations, including a $1,000 penalty per transaction for entities that do not comply, and allows merchants to seek damages or equitable relief if their rights are violated. The act is set to take effect on July 1, 2025.