Bill > S0316

This bill, relating to credit card fees, proposes to add a new section to Vermont law that prohibits payment card networks from charging certain fees on the portions of a transaction that represent taxes or gratuities. A "payment card network" is defined as an entity that provides the infrastructure for credit and debit card transactions, and an "issuer" is the company that provides the card. A "gratuity" is defined as a voluntary tip or an automatic service fee intended to replace a tip, while a "tax" refers to state or local sales, use, or excise taxes collected by a merchant. The bill specifically states that payment card networks cannot charge "interchange fees," which are fees paid to the card issuer, if these fees are calculated as a percentage of a transaction that includes taxes or gratuities. Furthermore, they cannot increase the fees on the non-tax or gratuity portion of a transaction to compensate for excluding these amounts. Violations can result in civil penalties of $1,000 per transaction, and merchants can sue for damages. This new law is set to take effect on July 1, 2026.