RI H7607

State and local taxes (sales, use, occupancy, excise) and gratuities listed separately on payment invoices must be excluded from the total amount on which credit/debit card swipe fees are calculated

Payment card networks must either deduct tax and gratuity amounts from swipe fee calculations at settlement or rebate merchants the equivalent swipe fee amount within 180 days if tax data is submitted later

Payment card issuers and networks are prohibited from increasing swipe fee rates on other portions of transactions to circumvent the law

Violations carry civil penalties up to $1,000 per violation, enforceable by the Attorney General through legal action or injunction, plus required refunds to merchants

Effective date: January 1, 2027