Bill > HB1274

This bill establishes the "Interchange Fee Prohibition Act" which aims to prevent payment card networks, banks, and processors from charging merchants interchange fees on the tax portion of electronic payment transactions. The bill provides detailed definitions for various terms related to electronic payments, including credit and debit cards, payment networks, and transaction processes. Specifically, the bill requires that if a merchant provides the tax amount during the authorization or settlement process of an electronic payment transaction, no interchange fee can be charged on that tax portion. If a merchant does not initially provide tax amount data, they can submit tax documentation within 180 days, after which the issuer must credit back the interchange fees charged on the tax amount. The bill also prohibits payment networks, banks, and processors from manipulating interchange fee calculations to circumvent the intent of the law. Violations of this act can result in a civil penalty of $1,000 per electronic payment transaction, with the issuer required to refund the merchant the interchange fee calculated on the tax amount. This legislation seeks to reduce the financial burden on merchants by preventing them from being charged fees on tax amounts during electronic payment transactions.

Business and Industry

https://house.mo.gov/Bill.aspx?bill=HB1274&year=2025&code=R