VT H0317

Prohibits credit card issuers, payment card networks, acquirer banks, and processors from charging interchange fees on the tax or gratuity portions of electronic payment transactions

Requires merchants to transmit tax and gratuity amounts separately during transaction authorization or settlement; merchants who fail to do so may submit tax documentation within 180 days to receive a credit for overcharged fees

Defines "gratuity" to include both voluntary tips and automatic service fees intended to replace voluntary contributions

Establishes a $1,000 civil penalty per transaction for violations, plus a private right of action for merchants to recover damages and attorney's fees

Takes effect July 1, 2025