CT HB05489

Payment card networks must exclude sales tax (chapter 219) from the amount on which interchange fees are calculated for electronic payment transactions, effective October 1, 2024.

Payment card networks shall deduct the tax amount from interchange fee calculations at settlement or rebate a proportionate amount of the interchange fee based on the tax collected.

Retailers unable to capture tax information at the time of sale may submit sales data to the payment card network as proof, which must be accepted and promptly credited to the retailer's settlement account.

The Connecticut Attorney General may sue payment card networks for violations, seeking civil penalties of up to $1,000 per violation and refunds to retailers of illegally imposed interchange fees.

The act creates new definitions for credit cards, debit cards, electronic payment transactions, interchange fees, payment cards, payment card networks, and settlement.