An Act relating to interchange fees on tax and gratuity; and relating to the Alaska Unfair Trade Practices and Consumer Protection Act.

HB 171 prohibits payment processors from charging merchants interchange fees on the tax or tip portion of card payments when merchants provide documentation of those amounts during transaction processing. Merchants must submit tax/tip records to the payment processor within 180 days, triggering a 30-day refund of any fees charged on those portions. Violations carry $1,000 penalties per transaction, and processors cannot raise fees on other transaction parts to offset lost tax/tip fees. This directly affects restaurants, retailers, and other businesses accepting card payments in Alaska, ensuring they aren't overcharged on taxes or tips.