The proposed bill S.135, introduced by Senator Perchlik, aims to enhance consumer protection in Vermont by prohibiting credit card fees on transaction amounts that include taxes or gratuities. It establishes a new subchapter under 9 V.S.A. that defines key terms such as "merchant," "interchange fee," and "gratuity," and outlines the requirements for merchants regarding the transmission of tax and gratuity amounts during electronic payment transactions. Specifically, it prohibits issuers, payment card networks, acquirer banks, or processors from charging interchange fees on these amounts, and sets penalties for violations, including civil penalties of $1,000 per transaction.

Additionally, the bill mandates that sellers or lessors must accept cash as a payment method for transactions under $500, effectively prohibiting cashless businesses for smaller purchases. Violations of this cash acceptance requirement are classified as unfair practices in commerce. The bill is set to take effect on July 1, 2025, if passed.