NC H650

Prohibits credit 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 authorization or settlement to avoid fees; alternatively, merchants may submit tax documentation within 180 days to receive a refund within 30 days

Establishes civil penalties of $1,000 per transaction for violations, enforceable by the Attorney General, with proceeds going to the Civil Penalty and Forfeiture Fund

Prohibits payment industry entities from circumventing the law by increasing interchange fee rates on the non-tax/non-gratuity portion of transactions

Effective October 1, 2025, applying to transactions made on or after that date