MD SB917

Merchants may request that interchange fees (credit/debit card processing fees) be calculated excluding the tax and gratuity portions of electronic payment transactions; issuers, payment networks, acquirer banks, and processors must comply when proper documentation is submitted

Merchants who do not submit tax and gratuity documentation at the time of transaction have 180 days to submit it and receive a credit for interchange fees charged on those amounts within 30 days

Payment processors are prohibited from increasing interchange fee rates on the non-tax/gratuity portion of transactions for merchants who utilize this exclusion

Violations carry civil penalties of $1,000 per transaction for failing to exclude tax/gratuity amounts or failing to credit merchants as required

Electronic payment transaction data may only be used to process transactions, detect fraud, support loyalty programs, tailor products to customers, or as required by law; unauthorized use constitutes an unfair or deceptive trade practice under Maryland's Consumer Protection Act