Interchange fees on state and local taxes prohibited.

Summary

The bill bars banks, card networks, acquirer banks, and processors from charging merchants interchange fees on the tax or tip portion of an electronic payment when the merchant reports those amounts during authorization or settlement. Merchants that fail to transmit the tax or gratuity data can submit supporting documentation within 180 days, and the issuer must credit any fee charged within 30 days. The measure seeks to stop hidden fees on taxes and gratuities at the point of sale.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

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