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 defines key terms such as "acquirer bank," "merchant," 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 outlines the responsibilities of merchants in transmitting tax and gratuity amounts during transaction authorization and settlement, and it sets penalties for violations, including civil penalties of $1,000 per transaction.

Furthermore, the bill requires sellers or lessors to accept cash as a payment method for transactions under $500, effectively prohibiting cashless businesses for smaller transactions. Violations of this requirement are classified as unfair practices in commerce. The act is set to take effect on July 1, 2025, providing a timeline for businesses to adjust to these new regulations.