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.

SB 370 requires payment networks (like Visa or Mastercard) to exclude state and local taxes (such as sales tax, hotel tax, or alcohol tax) from the transaction amount used to calculate interchange fees for credit and debit card payments. This means merchants pay lower processing fees on taxable items when customers pay by card. Payment networks must either deduct the tax amount at settlement or provide a proportional rebate to merchants. The law applies to all Tennessee businesses accepting card payments and takes effect July 1, 2025.