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

HB 7607 prohibits payment networks from charging swipe fees (interchange and assessment fees) on state or local taxes and separately listed gratuities (tips) in electronic payment transactions. It requires payment networks to either deduct these amounts from swipe fee calculations at settlement or rebate merchants within 180 days if tax/tip details aren't captured at checkout. This directly affects merchants (businesses accepting card payments) and payment networks like Visa or Mastercard. The law takes effect January 1, 2027, and includes penalties for violations, such as civil fines up to $1,000 per incident.