IA HSB324

Payment card networks (credit and debit card companies) would be prohibited from charging interchange fees on the tax portion of electronic payment transactions when the tax is separately listed on the invoice

Payment card networks must either deduct the tax amount from interchange fee calculations at settlement or rebate the proportionate interchange fee amount attributable to taxes

Covered taxes include Iowa sales and use taxes, hotel/motel taxes, local option taxes, automobile rental taxes, equipment taxes, water service taxes, fuel excise taxes, and cigarette/tobacco taxes

Payment card networks that violate these requirements face a civil penalty of $1,000 per violation, with collected penalties deposited into the state general fund

Private citizens may bring enforcement actions against violating payment card networks and recover the penalty amounts in lieu of state enforcement action