Excluding interchange fees imposed upon certain taxes at points of sale

Currently, a payment card network (credit or debit card) charges an interchange fee upon the entire electronic payment transaction amount, including the amount of any taxes charged. This bill excludes the amount of tax listed on the electronic payment transaction from the payment card network’s interchange fee assessed upon such a transaction. The bill defines “interchange fee” to mean a fee established, charged, or received by a payment card network for the purpose of compensating the issuer for its involvement in an electronic payment transaction. 41, and cigarette and tobacco taxes under Code chapter 453A. _____ the amount of any tax imposed from the calculation of an interchange fee specific to each form or type of electronic payment transaction at the time of settlement, or requires the payment card network to rebate the amount of an interchange fee proportionate to the amount attributable to the amount of tax. If a seller is unable to capture and transmit tax or amounts relevant to the sale at the time of the sale, the bill requires the payment card network to promptly credit the settlement account of the seller, upon sufficient proof. A payment card network that violates the bill is subject to a civil penalty in the amount of $1,000 per violation. Any moneys collected for violations of the bill shall be deposited into the general fund of the state. In lieu of the civil penalty, a person may enforce the bill through a private action, and any penalty amounts are recoverable by the person bringing the private action.