Bill > HB2089

This bill establishes the Consumer Inflation Reduction and Tax Fairness Act, which aims to prevent credit card networks, banks, and processors from charging interchange fees (transaction processing fees) on the tax and gratuity portions of electronic payment transactions. The bill provides detailed definitions for terms like electronic payment transactions, merchants, cardholders, and payment card networks, and creates a mechanism for merchants to avoid or recover these fees. Specifically, merchants can avoid interchange fees on tax and gratuity amounts by reporting these amounts during the transaction authorization or settlement process, or by submitting tax documentation within 180 days of the transaction. If card issuers, networks, banks, or processors attempt to circumvent this rule by manipulating fee calculations, they can be subject to civil penalties of up to $1,000 per transaction, potential injunctions, and mandatory refunds to merchants. The law also includes a severability clause, meaning that if any part of the act is found invalid, the rest of the act can still be enforced. The bill is designed to provide more fairness in electronic payment transactions by preventing financial institutions from collecting fees on taxes and tips that are not part of the actual goods or services purchased.

Labor and Employment

Commerce, Labor and Economic Development (House)

https://kslegislature.gov/li/b2025_26/measures/hb2089/