AL SB316

Credit card processors must exclude state and local taxes and fees from interchange fee calculations on electronic payment transactions.

Payment card networks must either deduct tax and fee amounts at settlement or rebate proportionate interchange fees based on taxes and fees collected.

Merchants and sellers can provide proof of tax and fee amounts if unable to capture and transmit them at point of sale, with card networks required to promptly credit their settlement accounts.

Violations subject payment card networks to liability including restitution of illegally charged interchange fees, punitive damages up to $1,000 per violation, court costs, and reasonable attorney's fees.

The act becomes effective on the first day of the third month following passage and gubernatorial approval.