The proposed bill S.135, introduced by Senator Perchlik, aims to enhance consumer protection in commerce by prohibiting credit card fees on transaction amounts that include taxes or gratuities. It establishes a new subchapter under 9 V.S.A. that outlines specific definitions related to electronic payment transactions, including terms like "merchant," "issuer," and "interchange fee." The bill mandates that no issuer, payment card network, acquirer bank, or processor can charge interchange fees on the tax or gratuity portion of a transaction. Additionally, it requires merchants to transmit the tax and gratuity amounts during the transaction authorization process, with provisions for correcting inaccuracies in reported amounts.

Furthermore, the bill stipulates that sellers or lessors must accept cash as a payment method for transactions under $500, effectively prohibiting cashless businesses for smaller purchases. Violations of these provisions would be considered unfair practices in commerce, subjecting offenders to civil penalties. The bill is set to take effect on July 1, 2025, if passed.