Bill > H0317

This bill aims to prohibit credit card companies, payment networks, and banks from charging interchange fees on the portion of a transaction that represents taxes or gratuities. The bill defines key terms such as "electronic payment transaction," "gratuity," and "payment card network," and establishes specific requirements for how merchants must handle tax and gratuity amounts during credit card transactions. Merchants are required to transmit tax and gratuity amounts as part of the transaction's authorization or settlement process, and if they fail to do so, they may be subject to interchange fees on the entire transaction. The bill provides a mechanism for merchants to submit tax documentation up to 180 days after a transaction and requires acquirer banks to credit merchants for interchange fees collected on tax and gratuity amounts. If a merchant submits an inaccurate amount, they must correct it within 30 days. Violations of this law can result in civil penalties of $1,000 per transaction, and merchants have the right to pursue civil action. The Attorney General is empowered to investigate and take action against violations, and the law is set to take effect on July 1, 2025, with a severability clause to ensure that if any part of the law is found invalid, the rest remains in force.

Business and Industry

https://legislature.vermont.gov/bill/status/2026/H.317