Bill > SB917

This bill introduces new regulations for electronic payment transactions, focusing on how interchange fees are calculated and applied to taxes and gratuities. The legislation defines several key terms, including "electronic payment transaction," "interchange fee," and "merchant," and establishes a process for merchants to request exclusion of tax and gratuity amounts from interchange fee calculations. Specifically, merchants can submit tax and gratuity documentation during the transaction authorization or settlement process, which would then require card issuers, payment networks, and processors to exclude those amounts when calculating interchange fees. If a merchant cannot provide documentation during the initial transaction, they have 180 days to submit it, after which the issuer must credit back the interchange fees charged on tax and gratuity amounts within 30 days. The bill also prohibits financial entities from manipulating interchange fee rates in response to these requests and restricts the distribution and use of transaction data to specific purposes like fraud prevention and customer service. Violations of these provisions will be considered unfair or deceptive trade practices, subject to potential penalties of $1,000 per transaction. The law is set to take effect on October 1, 2025, and aims to provide more transparency and fairness in electronic payment processing.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0917?ys=2025RS