RI S2522

Prohibits card issuers, payment card networks, acquirer banks, and processors from charging merchants interchange fees on the tax portion of credit or debit card transactions when merchants transmit the tax amount during authorization or settlement

Merchants who fail to transmit tax data at the time of transaction may submit tax documentation within 180 days, and issuers must credit back the interchange fees charged on taxes within 30 days of receiving documentation

Prohibits payment card networks and processors from circumventing the law by increasing interchange fee rates on the non-tax portion of transactions

Violations constitute a deceptive trade practice under Rhode Island law, with civil penalties of up to $1,000 per violating transaction plus required refund of improperly charged interchange fees

Takes effect immediately upon passage