AZ HB2629

Prohibits issuers, payment card networks, acquirer banks, and processors from charging interchange fees on tax amounts when merchants identify taxes during authorization or settlement of electronic payment transactions.

Requires merchants who do not separately identify taxes to submit tax documentation to the acquirer bank within 180 days of the transaction, and the acquirer bank must credit the interchange fee to the merchant within 30 days of receiving documentation.

Prohibits entities from imposing interchange fees by manipulating fee calculations or increasing rates on credit or debit card transactions for amounts not attributable to taxes or other fees charged to retailers.

Imposes civil penalties of $1,000 per electronic payment transaction for violations and requires refund of any illegally charged interchange fees.

Provides comprehensive definitions for terms including "acquirer bank," "interchange fee," "electronic payment transaction," "merchant," "payment card network," and "tax."