HB171

What it does

• Requires issuers, payment card networks, acquirer banks, and processors to stop charging interchange fees on the tax or gratuity amount of a transaction if the merchant sends documentation proving these amounts during authorization or settlement.
• Allows merchants up to 180 days after a sale to submit missing tax or tip documentation so they can receive a credit for the fee within 30 days.
• Prohibits issuers, payment card networks, acquirer banks, and processors from raising interchange fees on other parts of a transaction just because they are not collecting fees on taxes or tips.
• Sets a civil penalty of $1,000 for each violating transaction and requires the issuer to refund the merchant the fee charged on the tax or tip amount.
• Limits how entities involved in processing payments can use customer data so it is only used to process transactions or as required by law.