Bill > SB5070

This bill addresses fees associated with electronic payment transactions, specifically focusing on protecting tipped workers' wages and reducing financial burdens on merchants. The legislation prohibits interchange fees (transaction processing fees) on tax and gratuity amounts during credit or debit card transactions. Key provisions include requiring payment card networks to develop mechanisms for merchants to clearly identify tax and gratuity amounts during transactions, preventing financial institutions from charging fees on these specific amounts, and establishing a penalty of $1,000 per transaction for violations. The bill defines numerous technical terms related to electronic payments and provides merchants a 180-day window to submit tax documentation if they initially fail to transmit tax or gratuity data during the transaction. Additionally, the bill modifies existing wage laws to explicitly state that employers cannot reduce an employee's tips or gratuities by interchange fees, ensuring workers receive their full earned compensation. The new regulations will take effect on July 1, 2026, giving payment card networks and merchants time to adapt to the new requirements. The overall intent is to bring greater transparency and fairness to electronic payment processes, protecting both service workers' earnings and merchants' financial interests.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=5070&Year=2025&Initiative=false