Bill > HB29

This bill modifies Maryland's commercial law regarding electronic payment transactions, specifically focusing on how interchange fees are calculated and how transaction data can be used. The bill introduces detailed definitions for various terms related to electronic payments, including acquirer banks, debit and credit cards, and payment card networks. It establishes new rules that allow merchants to request the exclusion of tax and gratuity amounts from interchange fee calculations by providing specific documentation during transaction authorization or settlement. If a merchant submits this documentation within 180 days of a transaction, the issuer must credit back the interchange fees charged on tax and gratuity amounts within 30 days. The bill also restricts how payment card networks, banks, and processors can use transaction data, limiting distribution to specific purposes such as processing transactions, fraud prevention, loyalty programs, and tailoring customer services. Violations of these data usage restrictions are considered unfair or deceptive trade practices subject to enforcement. The bill will take effect on October 1, 2025, and aims to provide more transparency and fairness in electronic payment transactions by protecting merchants from excessive fees and preventing unauthorized use of transaction data.

Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0029?ys=2025RS