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MA S688
Bill
Status
Introduced
2/27/2025
Primary Sponsor
Cynthia Creem
Click for details
AI Summary
- Prohibits credit and debit card issuers, payment card networks, acquirer banks, and processors from charging merchants interchange fees on the sales tax or gratuity portions of electronic payment transactions
- Requires merchants to transmit tax or gratuity amount data during the authorization or settlement process to qualify for the fee exemption
- Allows merchants who fail to transmit data at time of transaction to submit tax documentation within 180 days, with issuers required to credit the overcharged fees within 30 days
- Prohibits payment card entities from circumventing the law by increasing interchange fee rates on the non-tax portion of transactions
- Imposes a $1,000 civil penalty per transaction for violations, plus mandatory refund of improperly charged interchange fees on tax or gratuity amounts
Legislative Description
Prohibiting card interchange fees on tax or gratuity
Last Action
Hearing rescheduled to 10/30/2025 from 10:30 AM-02:00 PM in A-2 Hearing updated to New End Time
10/30/2025
Committee Referrals
Financial Services2/27/2025
Full Bill Text
No bill text available