OK SB1940

Payment card networks must exclude state and local taxes and gratuities from the gross transaction amount when calculating percentage-based interchange fees

Networks must either deduct tax/gratuity amounts at settlement or rebate merchants the interchange fees attributable to those amounts within 30 days of documentation submission

Merchants have 180 days after a transaction to submit documentation of tax and gratuity amounts if not captured at time of sale

Exemption applies to payment card issuers with less than $50 billion in consolidated worldwide assets in the preceding calendar year

Effective date is November 1, 2026, with the Attorney General authorized to promulgate implementation rules