Bill > HB315

This bill amends Title 6 of the Delaware Code concerning credit card fees by updating definitions and adding new provisions related to gratuities and surcharge fees. It clarifies terms like "authorization" (when a merchant asks for approval for a payment), "clearance" (sending final transaction data for posting and fee calculation), "credit card" (as defined by federal law), "debit card" (used for electronic fund transfers from a consumer's account), "electronic payment transaction" (using a card or device for payment), "gratuity" (money voluntarily given to an employee), "interchange fee" (a fee paid to the card issuer), "issuer" (the entity that provides the card), "merchant" (a business accepting electronic payments), "payment card network" (the system that routes transactions), "processor" (an entity that manages payment procedures), "settlement" (transferring funds to the merchant), and "surcharge" (an extra charge not applied to cash payments). The bill specifically prohibits payment card networks from charging interchange fees on the gratuity portion of an electronic payment transaction, provided the merchant correctly transmits this information. It also outlines a process for merchants to claim refunds for interchange fees charged on gratuities if the data wasn't initially transmitted correctly, and prevents payment card networks from manipulating fees to bypass this new rule. Violations by payment card networks can result in significant civil penalties.

Business and Industry

https://legis.delaware.gov/BillDetail?LegislationId=142907