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

SB 2344 prohibits payment networks and financial institutions from charging merchants interchange fees on the tax or gratuity portions of electronic payments. It requires merchants to report tax/gratuity amounts during transaction authorization or settlement to avoid these fees, or submit documentation within 180 days for refunds. Merchants who fail to report can still seek refunds by providing tax/gratuity documentation, and payment networks face $1,000 penalties per violation for noncompliance. The law applies to credit/debit card transactions and takes effect January 1, 2027.