VT S0135

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

Requires merchants to transmit tax and gratuity amounts during transaction authorization/settlement to receive fee exemption; merchants may also submit documentation within 180 days for retroactive credits

Mandates retailers accept cash as payment for all transactions under $500.00

Establishes $1,000.00 civil penalty per transaction for violations by payment card entities, plus private right of action for merchants including attorney's fees

Effective date: July 1, 2025