An Act amending Title 72 (Taxation and Fiscal Affairs) of the Pennsylvania Consolidated Statutes, providing for prohibition on certain payment card network fee practices; and imposing penalties.

PRINTER'S NO. 2827
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2090
Session of
2026
INTRODUCED BY GALLAGHER, SAMUELSON, SCOTT, HOHENSTEIN,
SHUSTERMAN, WAXMAN, WEBSTER, MAYES, GIRAL, PROBST, HILL-
EVANS, SANCHEZ, INGLIS, DOUGHERTY, NEILSON, MARKOSEK AND
PIELLI, JANUARY 30, 2026
REFERRED TO COMMITTEE ON FINANCE, JANUARY 30, 2026
AN ACT
Amending Title 72 (Taxation and Fiscal Affairs) of the
Pennsylvania Consolidated Statutes, providing for prohibition
on certain payment card network fee practices; and imposing
penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 72 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 19
PROHIBITING CERTAIN PAYMENT CARD NETWORK FEE PRACTICES
Sec.
1901. Definitions.
1902. Prohibition on certain payment card network fee
practices.
1903. Penalties.
§ 1901. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Acquirer bank." A member of a payment card network that
contracts with a merchant for the settlement of electronic
payment transactions. The contract may be directly with a
merchant or indirectly through a processor to process electronic
payment transactions.
"Consumer." A person who has been issued a credit card or
debit card or who purchases goods or services using an
electronic payment transaction or another method of payment.
"Credit card." A card, plate, coupon book or other credit
device existing for the purpose of obtaining money, property,
labor or services on credit.
"Debit card." A card or other payment code or device issued
or approved for use through a payment card network to debit an
asset account, notwithstanding the purpose for which the account
is established and whether authorization is based on signature,
personal identification number or other means. The term includes
a general-use prepaid card, as defined in 15 U.S.C. § 1693l-1
(relating to general-use prepaid cards, gift certificates, and
store gift cards). The term does not include a paper check.
"Electronic payment transaction." A transaction in which a
person uses a debit card, credit card or other payment code or
device, issued or approved through a payment card network to
debit a deposit account or use a line of credit, whether
authorization is based on a signature, personal identification
number or other means.
"Fee schedule." A schedule, list, table, chart or similar
document or agreement, whether publicly disclosed or not, that
provides or fixes the amount, or the formula for determining the
amount, of one or more fee rates.
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"Interchange fee." 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.
"Issuer." A person issuing a debit card or credit card or
the issuer's agent.
"Merchant." A person that accepts electronic payment
transactions and collects and remits a tax.
"Payment card network." An entity that meets all of the
following:
(1) Directly, or through licensed members, processors or
agents, provides the proprietary services, infrastructure and
software that routes information and data to conduct debit
card or credit card transaction authorization, clearance and
settlement.
(2) A merchant or seller uses in order to accept as a
form of payment a brand of debit card, credit card or other
device that may be used to carry out debit or credit
transactions.
"Processor." An entity that facilitates, services, processes
or manages the debit or credit authorization, billing, transfer,
payment procedures or settlement with respect to any electronic
payment transaction.
"Tax." A tax levied on the sale at retail of goods and
services under Article II of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
§ 1902. Prohibition on certain payment card network fee
practices.
(a) Payment card network prohibitions.--A payment card
network, whether directly or through an agent, acquirer bank,
processor, contract, requirement, condition, penalty,
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technological specification or inducement, may not:
(1) establish, charge or put forward on a fee schedule
an interchange fee if:
(i) the fee is or includes a percentage multiplied
by the gross dollar amount of a transaction conducted
with a debit card or credit card; and
(ii) the fee does not exclude from the gross dollar
amount of the transaction any amount attributable to a
tax on the transaction;
(2) increase the rate or amount of an interchange fee or
other fee that applies to the portion of an electronic
payment transaction other than the portion attributable to a
tax on the transaction in an attempt to, or in a manner that
would, circumvent the prohibition provided under paragraph
(1);
(3) charge a fee to a consumer or merchant related to a
disputed electronic payment transaction until the dispute has
been resolved by a determination that the consumer or
merchant is liable for the transaction and the consumer or
merchant has been provided written notice of the
determination; or
(4) impose a fee or other penalty on a merchant for
setting prices in a manner that complies with Federal and
State law.
(b) Duties of payment card network.--A payment card network
shall:
(1) Either:
(i) deduct the amount of any tax imposed from the
calculation of interchange fees specific to each form or
type of electronic payment transaction at the time of
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settlement; or
(ii) rebate an amount of an interchange fee
proportionate to the amount attributable to the tax.
(2) If a merchant or seller is unable to capture and
transmit tax or fee amounts relevant to the sale at the time
of sale, accept proof of tax or fee amounts collected on
sales subject to an interchange fee upon the submission of
sales data by the merchant or seller and promptly credit the
merchant or seller's settlement account.
§ 1903. Penalties.
(a) Injunctive relief.--The Attorney General may file suit
to seek injunctive relief and, if appropriate, to collect a
civil penalty and order restitution from any payment card
network that the Attorney General believes has violated any
provision of this chapter.
(b) Civil penalty and refund.--A payment card network that
violates this chapter shall:
(1) Be subject to a civil penalty of not more than
$1,000 per violation, payable to the plaintiff.
(2) Refund, to each merchant or consumer that utilizes
the payment card network, as applicable, the portion of any
fee that was collected in violation of this chapter.
Section 2. This act shall take effect in 60 days.
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