AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- INTERCHANGE FEES

HB 5554 prohibits payment networks, banks, and processors from charging interchange fees on the tax or gratuity portion of electronic credit or debit card transactions. Merchants must report tax and gratuity amounts during transaction processing to avoid these fees; if they fail to do so, they can submit proof within 180 days for refunds. The law directly affects businesses that collect sales tax or tips (e.g., restaurants, retailers) and payment networks handling card transactions. It takes effect January 1, 2026, with violations subject to $1,000 penalties per transaction. The bill does not change tax or tip amounts but removes fees charged on those specific portions.