No Interchange Fees on Sales Tax or Tips.

House Bill 650, titled "No Interchange Fees on Sales Tax or Tips," prohibits payment card networks, issuer banks, and acquirer banks from charging interchange fees on the sales tax or gratuity portions of electronic payment transactions. This directly affects merchants by reducing the processing fees they pay on these specific amounts. Merchants must provide the tax or gratuity data during the transaction authorization or settlement process, or submit documentation later to receive a credit for any fees charged. The bill also includes measures to prevent entities from adjusting other fees to circumvent this prohibition. Violations can result in injunctive relief, civil penalties, and refunds to affected merchants.