Bill > H7607

This bill, effective January 1, 2027, prohibits charging "swipe fees" on state or local taxes and gratuities. Swipe fees are essentially the combined interchange fees (paid to the card issuer) and assessment fees (paid to the payment card network) that merchants pay when a customer uses a credit or debit card for an electronic payment transaction. The bill defines these terms and clarifies that taxes (like sales or occupancy taxes) and voluntary tips given to service staff should not be included when calculating these fees. Merchants will either have these fees deducted at the time of settlement or receive a rebate for any fees improperly charged on taxes or gratuities, with specific timelines for processing these adjustments. The bill also outlines penalties for violations, including civil fines and the requirement to refund merchants, and includes a severability clause to ensure the rest of the law remains in effect even if parts are found invalid.

Business and Industry

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