Bill > H5582

This bill creates the Interchange Fee Restriction Act, which aims to prevent payment card networks, acquirer banks, issuers, and processors from charging interchange fees on the tax portion of credit or debit card transactions. The bill provides detailed definitions for key terms such as electronic payment transactions, interchange fees, and various players in the payment processing ecosystem. Under the proposed law, merchants can avoid interchange fees on tax amounts by transmitting tax data during the authorization or settlement process, and if they fail to do so initially, they have 180 days to submit tax documentation to receive a refund of those fees. The bill mandates that payment card networks and financial entities cannot manipulate fee structures to circumvent the intent of the law. Violations of this prohibition would be considered a deceptive trade practice, subject to civil penalties of up to $1,000 per transaction, with the issuer required to refund the merchant the interchange fees charged on the tax portion of the transaction. The act is designed to reduce the financial burden on merchants by preventing what the bill views as unnecessary fees on tax-related transaction amounts, and it will take effect immediately upon passage.

Business and Industry

https://status.rilegislature.gov/