Bill > S05587

This bill amends the New York General Business Law to modify how interchange fees are calculated for electronic payment transactions, specifically requiring that state and local taxes and fees be excluded from the base amount on which these fees are charged. The bill defines key terms like "electronic payment transaction," "interchange fee," and "payment card network," and provides a comprehensive list of applicable taxes including sales tax, hotel occupancy tax, alcohol taxes, and fuel taxes. Under the new law, payment card networks must either deduct tax and gratuity amounts from interchange fee calculations at the time of settlement or provide a proportional rebate of interchange fees. If a merchant cannot transmit tax amounts during the transaction, the payment card network must accept proof of collected taxes and credit the merchant's settlement account. The bill also establishes penalties for non-compliance, including a potential civil penalty of up to $1,000 per violation and a requirement to refund any improperly collected surcharges. The law is designed to ensure that merchants are not charged interchange fees on the tax portions of their electronic payment transactions, potentially reducing their transaction costs.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5587