merchant; fees; calculation; transactions; penalty

HB 2629 requires Arizona businesses (merchants) accepting credit or debit card payments to disclose the tax amount during electronic transactions to avoid being charged an interchange fee on that tax portion. If a merchant fails to provide this tax information upfront, they must submit tax documentation within 180 days to receive a refund of the fee from the payment processor. Payment networks and processors are prohibited from charging fees for tax amounts or manipulating fee calculations, and violations incur a $1,000 civil penalty per transaction. The bill directly affects merchants, payment networks, and banks handling electronic payments in Arizona, aiming to prevent extra fees on taxes collected by businesses.