Bill > S0135

This bill introduces two main provisions affecting financial transactions in Vermont: first, it prohibits credit card networks, acquirer banks, and issuers from charging interchange fees on the tax and gratuity portions of a transaction, requiring merchants to separately transmit these amounts during the payment process. The bill defines key terms like "gratuity" (including both voluntary tips and automatic service fees), "interchange fee" (a fee compensating card issuers), and establishes a process for merchants to report tax and gratuity amounts, with penalties of $1,000 per violation for non-compliance. Second, the bill mandates that businesses must accept cash payments for transactions under $500, preventing retailers from becoming "cashless" businesses for purchases below that threshold. Violations of this cash acceptance requirement are considered an unfair commerce practice. The legislation aims to reduce financial burden on merchants by limiting credit card processing fees and ensure payment accessibility for consumers who prefer or rely on cash. The bill is set to take effect on July 1, 2025, giving businesses time to prepare for these new requirements.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/S.135