Credit and Debit Cards - As introduced, requires state and local taxes and fees be excluded from the calculation of interchange fees by payment card networks for electronic payment transactions. - Amends TCA Title 67.

HB 967 requires payment card networks in Tennessee to exclude state and local taxes and fees (like sales tax or hotel occupancy tax) from the transaction amount used to calculate interchange fees for credit and debit card payments. This directly affects merchants and sellers who accept electronic payments, as it reduces the fees they pay to payment networks on taxed transactions. The bill mandates that networks either deduct tax amounts from interchange fees at settlement or provide proportional rebates. The policy change takes effect July 1, 2025, and includes a $1,000 civil penalty for non-compliance.