Bill > S1055

This bill establishes new regulations for electronic payment transaction interchange fees in Idaho, focusing on preventing payment card networks from charging interchange fees on taxes and gratuities. Specifically, when a merchant separately identifies taxes and gratuities on an invoice, these amounts must be excluded from the base calculation of interchange fees. Payment card networks must either deduct these amounts from interchange fee calculations or provide a proportional rebate at the time of transaction settlement. If a merchant cannot immediately capture and transmit tax and gratuity amounts, they have 180 days to submit documentation, after which the payment card network must credit the merchant within 30 days. The bill defines numerous technical terms like "electronic payment transaction," "interchange fee," and "payment card network" to provide clarity. It also prohibits merchants or payment networks from manipulating fees to circumvent these rules, and establishes a civil penalty of $1,000 per transaction for violations. The provisions will take effect on January 1, 2026, and aim to reduce the financial burden on merchants by ensuring they are not charged interchange fees on taxes and tips.

Business and Industry, Justice

Commerce and Human Resources Committee (S)

https://legislature.idaho.gov/sessioninfo/2025/legislation/S1055/