Bill > A04017

This bill amends the New York General Business Law to modify how interchange fees are calculated for electronic payment transactions involving credit or debit cards. Specifically, the bill requires payment card networks to exclude state and local taxes and fees from the base amount used to calculate interchange fees. The bill provides detailed definitions for key terms like "credit card," "debit card," and "electronic payment transaction," and outlines how payment card networks must handle these tax-related calculations. Payment card networks must either deduct tax amounts from interchange fee calculations at the time of settlement or provide a proportional rebate of interchange fees. If a merchant cannot capture tax amounts at the point of sale, the payment card network must accept proof of collected taxes and credit the merchant's account accordingly. The bill also establishes penalties for non-compliance, including a civil penalty of up to $1,000 per violation and requiring the network to refund any improperly collected surcharges. The legislation covers a wide range of taxes, including sales tax, hotel occupancy tax, taxes on alcoholic beverages, fuel taxes, and rental vehicle taxes, and will take effect on the first of July following its enactment.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A4017